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Warehouse Reit targets £100m in fundraising

The warehouse landlord has identified a pipeline of assets worth more than £350m
March 11, 2020

Warehouse Reit (WHR) is hoping to raise £100m by issuing new shares in order to invest in a pipeline of small-to medium-sized urban warehouse assets.

IC TIP: Buy at 110p

The shares will be admitted – via a placing, open offer, offer for subscription and offer to retail investors via intermediaries – at an issue price of 111.5p, which represents a 6 per cent premium to net asset value at the end of September and a 2 per cent discount to the shares’ closing price the day prior to the announcement. 

Shareholders that qualify to participate in the open offer are being offered one new share for every three existing shares. 

The industrial property group said it had identified a pipeline of £352m, of which approximately £72m are in exclusive or final negotiations, with a target investment yield of more than 6 per cent.  

Those assets are located in “non-tertiary locations”, said Andrew Bird, chief executive of Tilstone, the Reit’s investment manager, as part of its strategy to “continue to buy quality”.