London Stock Exchange welcomes Warehouse REIT plc to AIM
London Stock Exchange welcomed Warehouse REIT plc (the “Company” or “Warehouse REIT”) to the start of dealings in its shares and admission to the AIM market, today, 20 September 2017, under the ticker "WHR" (ISIN GB00BD2NCM38).
Warehouse REIT is a new Real Estate Investment Trust with a portfolio and investment strategy purely focused on UK warehouses assets. It successfully raised gross proceeds of £150 million via an institutional placing and an intermediaries offer at the price of 100 pence per Ordinary Share. On Admission, the Company will have a market capitalisation of approximately £166 million at the Placing Price.
The Company will invest the net proceeds of the Issue into a diversified portfolio of UK warehouse assets located in urban areas, including the Tilstone Property Portfolio (the “Portfolio”), a hand-picked seed portfolio of 27 freehold and long leasehold warehouse assets which it has acquired today on Admission for £108.85 million.
Warehouse REIT is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 per cent. for the year ending 31 March 2019, (covered by earnings and based on the issue price of 100 pence per Ordinary Share) and a total return of at least 10 per cent, through a combination of dividends and NAV growth. The Company intends to adopt a progressive dividend policy.
Occupier demand for urban warehouse space is increasing as the structural growth in e-commerce has driven the rise in internet shopping and investment by retailers in the “last mile” delivery sector. The urban warehouse sector offers one of, if not the highest, initial yield of all UK property sectors.
The Company has already identified and entered into preliminary negotiations with the vendors of a number of assets, totalling approximately £88 million, which meet the Company’s investment objective and investment policy. These include off-market assets identified by Tilstone Partners Ltd and Savills.
Peel Hunt LLP (“Peel Hunt”) is acting as nominated adviser and broker to the Company.
Andrew Bird, Managing Director of Tilstone, commented:
“Today marks just the start of an exciting future for Warehouse REIT as a listed company as we look forward to delivering on our strategy for shareholders. The team has been greatly encouraged by the oversubscribed nature of the IPO and the breadth of investors that have supported us, comprising fund managers, retail investors and wealth managers.
“We are keen to get started on deploying the proceeds of the IPO and acquiring our pipeline targets, as well as identifying further opportunities to unlock value. We would like to thank all those involved in the IPO and look forward to successfully growing the company.”