£4.2m deal for Wakefield warehouse

£4.2m deal for Wakefield warehouse

A 53,000 sq ft Wakefield warehouse has been acquired for £4.2m in a sale and leaseback deal by listed specialist property investor Warehouse REIT.

The unit at the Wakefield 41 industrial estate was acquired via a sale and leaseback to Stapleton's Tyre Services, one of the UK's largest distributors of passenger car and 4x4 and van tyres. The tenant has agreed a new 15 year lease, generating £281,000 per annum. The deal reflects a net initial yield of 6.3 per cent.

The warehouse serves as the company's key northern distribution hub, serving more than 1,000 garages and stores in Yorkshire and Lincolnshire.

Last Friday (29 March 2019), Warehouse REIT raised £76.48m of equity, which along with leverage, provides it with more than £120m to support further investments.

Andrew Bird, of Tilstone Partners, the manager of Warehouse REIT, said: "The Stapleton's unit in Wakefield satisfies a long-standing requirement to bolster our holding on the M62, which is increasingly becoming an important location for ecommerce and traditional logistics operators. We look forward to further developing our relationship with the occupier being a key part of our asset management offer.

"Following the successful share issue announced on Friday, which provides us with more than £120m to deploy, it is pleasing to be able to immediately deliver on this acquisition, whilst the substantial remaining capital means we are now in a position to accelerate delivery of our near term pipeline and significantly scale the portfolio."

Wakefield 41is located adjacent to Junction 41 of the M1 and 2.5 miles south of the M1/M62 interchange. It is also home to companies including Coca Cola, Morrisons and Menzies.