A sale and leaseback deal by listed specialist property investor Warehouse REIT has led to the acquisition of a 53,000 sq ft Wakefield warehouse for £4.2 million. Stapleton’s Tyre Services, one of the UK’s largest distributors of passenger car and 4×4 and van tyres, has agreed a new 15 year lease for the unit at the Wakefield 41 industrial estate.
The new deal will generate £281,000 per annum, reflecting a net initial yield of 6.3%. Meanwhile, the warehouse serves as the company’s key northern distribution hub, serving more than 1,000 garages and stores in Yorkshire and Lincolnshire.
£76.48 million of equity were raised last Friday by Warehouse REIT, which, alongside leverage, provides it with more than £120 million to support further investments.
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,” said Andrew Bird, of Tilstone Partners, the manager of Warehouse REIT.
“Following the successful share issue announced on Friday, which provides us with more than £120 million 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,” Andrew added.
Wakefield 41 is 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.