Logistics boom: Warehouse investment trust launches on London’s main market
Warehouse Real Estate Investment Trust (REIT) is launching onto London’s main market, it announced today, after five years on the junior market.
The logistics real estate heavyweight is expected to have access to a larger pool of capital and investors as a result, which it hopes will boost its liquidity and recognition.
Warehouse REIT, which has a valuation of £670m, raked in £48.7m in gross property income in the year to 31 March, up from £35.8m a year prior.
The Trust completed 62 new lettings in the 12-month period, logistics and warehouse spaces in the UK have rocketed in demand, as businesses seek to invest in distribution centres and bring supply chains closer to home post-Brexit.
Following its launch on the AIM market in 2017 after raising £150m in float cash, the Trust has undergone a string of deals to grow its portfolio across the UK.
Warehouse REIT’s portfolio now comprises of 91 estates, as it looks to further diversity its asset portfolio and shareholder register.
“The industrial real estate sector continues to benefit from strong underlying fundamentals, with an acute shortage of new and vacant space and strong occupational demand as our customers continue to adapt to changes in supply chains and uncertain global conditions,” chairman Neil Kirton explained in a statement.
“This is increasingly leading to rental growth which we are currently observing across our assets. We remain focused on scaling the portfolio, adding high-quality and well-located logistics, e-commerce, urban and last-mile industrial assets alongside progressing a number of major asset management initiatives.”