Warehouse REIT acquires Amazon-let warehouse
Warehouse REIT has acquired an Amazon-let warehouse in Widnes, Cheshire for £2.765 million.
Amazon currently holds the 48,932 sq ft property on a newly agreed five-year lease to serve its last mile distribution requirements in the North West region. It is generating a rental income of £216,432 per annum (£4.42 per sq ft), offering attractive growth prospects, while its low capital value of £56 per sq ft is less than the cost of replacement.
The property is located at Halebank Industrial Estate in Widnes, Cheshire and features two storey office accommodation and an electrically operated loading bay in a self-contained 2.5 acre site.
“This transaction is in line with Warehouse REIT’s strategic focus, being located in an established commercial location, close to urban centres and well connected by strong local transport infrastructure – exactly what ecommerce businesses are looking for from a warehouse facility, while also enabling us to benefit from the yield arbitrage following recent disposals of lower yielding assets,” said Andrew Bird, managing Director of Tilstone Partners, the manager of Warehouse REIT.