Warehouse REIT secures 106,000 sq ft lease renewal
12 June 2020
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT secures 106,000 sq ft lease renewal with Iron Mountain in Warrington
Warehouse REIT, the AIM-listed specialist warehouse investor, has completed a 10-year lease renewal with Iron Mountain, the NYSE listed storage and information management services company, at Stretton Green Distribution Park, Warrington.
Iron Mountain, which services 230,000 customers in over 50 countries and generated revenues of over $1 billion in the first quarter of 2020, has occupied the 106,000 sq ft single-let purpose built high bay warehouse since 2005. The 10-year lease renewal, with no breaks, has been agreed at a 26% uplift to the previous rent paid, with a headline rent of £615,000 per annum, or £5.80 psf. The agreement reflects the strong demand for high quality warehouse facilities in the North West, as well as the strategic importance of the unit to the tenant's UK client base.
Stretton Green Business Park is located two miles from Junction 20 of the M6 and M56 interchange, close to the major conurbations of Manchester, Liverpool and Warrington. The warehouse was one of seven properties in a 995,100 sq ft portfolio acquired by Warehouse REIT in September 2019 for an initial consideration of £70 million, the value of which increased by 7.4% in the subsequent six months. This letting will further enhance income and value, increasing the WAULT for the entire Warehouse REIT portfolio from 5.2 years to 5.4 years.
Paul Makin, Investment Director of Tilstone Investment Partners, commented: "This major lease renewal with an extremely strong covenant is the latest illustration of our ability to significantly improve the rental tone across Warehouse REIT's portfolio, actively working with our tenant partners to reach a solution that benefits both owner and occupier.
"Whilst we continue to be rigorously focused on cash collection in order to mitigate the near term economic challenges posed by COVID-19, we are alive to all opportunities resulting from the consequential acceleration of favourable structural trends which are underpinning occupier demand for space across the portfolio."
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
|
Tilstone Partners Limited Andrew Bird, Paul Makin |
+44 (0) 1244 470 090 |
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G10 Capital Limited (part of the Lawson Conner Group), as AIFM Gerhard Grueter |
+44 (0) 20 3696 1302 |
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Peel Hunt (Financial Adviser, Nominated Adviser and Broker) Capel Irwin, Carl Gough, Harry Nicholas |
+44 (0)20 7418 8900
|
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FTI Consulting (Financial PR & IR Adviser to the Company) Dido Laurimore, Ellie Sweeney, Richard Gotla |
+44 (0) 20 3727 1000 |
Further information on Warehouse REIT is available on its website:
http://www.warehousereit.co.uk/
Notes to editors:
Warehouse REIT plc is an AIM-listed specialist warehouse investor.
Our purpose is to own and manage warehouses in economically vibrant urban areas across the UK, providing the space our tenants need for their businesses to thrive.
As we grow, our vision is to become the UK's warehouse provider of choice.
The Company is an alternative investment fund ("AIF") for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) ("AIFMD") and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager ("AIFM"). The Investment Manager is currently G10 Capital Limited.
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