Warehouse Reit (WHR) has suspended its plans to raise up to £100m via a placing, open offer, offer for subscription and offer to retail investors via intermediaries. It says any application monies received will be returned as soon as practicable.
The Reit had planned to use the net proceeds to acquire additional properties and diversify its portfolio, capitalising on demand for last-mile logistics. At the time the open offer was announced, it said its investment advisor had identified a £352m pipeline of opportunities with a target investment yield of more than 6 per cent, of which £72m are in exclusive or final negotiations.
Chairman Neil Kirkton says he had engaged “extensively and positively” with investors regarding the proposed equity raise. However, the decision to shelve the fundraising plans was taken in light of the “unprecedented macroeconomic backdrop” caused by the coronavirus pandemic.
