Acquisition
29 Agosto 2003 - 4:00AM
UK Regulatory
RNS Number:1531P
Warner Estate Holdings PLC
29 August 2003
WARNER ESTATE ACQUIRES #166 MILLION INDUSTRIAL DISTRIBUTION PORTFOLIO
Warner Estate Holdings PLC, the property investment company ("Warner Estate")
has, with two partners, acquired a #166 million portfolio of industrial estates
and modern distribution warehouses. The net rental income is #12.3 million
representing a net initial yield of 7.25% on the purchase price.
In partnership with Bank of Scotland, Warner Estate has agreed to purchase eight
large, modern distribution warehouses for #113 million. The properties include
the 316,000 sq ft (29,360 sq. m) Tesco principal distribution warehouse at
Brooklands Business Park in Weybridge and the Focus distribution centre at
Western Approach in Bristol. The properties have been acquired by a 50/50 joint
venture company owned by Warner Estate and Bank of Scotland. This portfolio will
represent the initial core properties in an Industrial Distribution Property
Fund, for which Warner Estate will be responsible for the property asset
management.
This is the third major property fund launched in 2003 by Warner Estate,
following the establishment of the #223 million Agora Fund with Bank of Scotland
in March, focused on Northwest shopping centres, and the #109 million regional
office fund with The Royal Bank of Scotland in July.
In partnership with Barclays Bank, Warner Estate has also purchased three
industrial estates in Norwich, Harlow and Witney for #19 million. These
properties have been acquired by a 50/50 joint venture company owned by Warner
Estate and Barclays Bank.
Warner Estate has in addition purchased for its own core portfolio four smaller
distribution warehouses and three industrial estates with a total value of #34
million.
The #166 million portfolio has been purchased from Morley Fund Management.
Warner Estate is funding its investment in the joint ventures and the direct
property purchases through a combination of existing resources and new term
debt.
Following the acquisition of this portfolio, Warner Estate will have more than
#800 million of property under management.
Philip Warner, Chairman of Warner Estate commented,
" Warner Estate has already had an extremely busy year in 2003. We set out our
strategy for becoming a major property asset manager and we are delivering on
our promises. We have successfully launched three large property funds in
partnership with well known financial investors and exceeded our target for this
year of #750 million under management.
" We now manage and are co-investors in three funds focused on particular
sectors of the property market. We believe that these sectors, modern industrial
distribution units, Northwest shopping centres and regional offices offer good
potential for income and capital growth over the medium-term. The fund vehicles
which we have created offer investors an excellent route for investing directly
in property with the added benefit of a highly skilled team, dedicated to adding
value through asset management of the properties in the funds."
-ends-
Date: 29 August 2003
For further information contact:
Warner Estate Holdings PLC City Profile
Philip Warner, Chairman Simon Courtenay
Richard Moore, Property Director Tel: 020-7448-3244
Peter Collins, Finance Director
Tel: 020-7907-5100
Web: www.warnerestate.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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