Warehouse REIT, the AIM-listed specialist warehouse investor, has exchanged contracts to acquire a multi-unit estate in Northampton let to John Lewis and a multi-let industrial estate in Aberdeen. The assets were purchased in two separate transactions for a total consideration of £37 million.
In Northampton, the Company has acquired the freehold of two John Lewis distribution units, totalling 336,000 sq ft.
John Lewis, which has been onsite for over 25 years, has signed new 5 year leases, with a headline rent of £1,836,395 per annum across both units.
The units are situated within the ‘Golden Triangle’ on the Brackmills Industrial Estate. Other local occupiers include DHL, Yodel, Great Bear and ASDA. With 85% of the UK’s population within a 4.5 hour HGV time of Northampton, the warehouses are well positioned to support John Lewis’ growing ecommerce operations, where its online sales are forecast to rise to over 50% by 2020.
Andrew Bird of Tilstone said: “Following the successful fund raise providing the REIT with £120 million of capital to deploy, it is pleasing to deliver these high quality acquisitions, including another from our identified near term pipeline at the time of the equity raise, as we continue to demonstrate that we have the team in place to originate and acquire a range of favorably yielding opportunities across the UK.
“In Northampton, the warehouses are operational critical to John Lewis in what is still an undersupplied part of the UK for mid box warehouses.”