AEW UK REIT has made two further acquisitions for £14.65m.
Sandford House, located in Solihull town centre, provides 34,418sq ft of offices with parking for 130 vehicles. It was acquired for £5.4m. The property is fully let to the UK Borders Agency with a tenant break option in just under 2 years. The purchase price reflects a net initial yield of 10.9% and a capital value of £157 per sq ft.
69-75 Above Bar Street, Southampton is a prime retail parade of 3 units extending to 27,247sq ft. It was acquired for £9.25m. 40% of the income is secured against Barclays Bank with other units occupied by Blacks and Waterstones, providing an average weighted unexpired lease term of 6.2 years. The acquisition reflects a net initial yield of 8.75%.
Theses deals are the second and third that they’ve made since listing and they now have about £33m invested, £9.75m of which is in the AEW UK Core Property Fund.
AEWU : AEW UK REIT expands with two new purchases