AEW UK REIT, which listed on the LSE in May raising £100.5m, has announced the purchase of its fifth property for £12.2m. 225 Bath Street in Glasgow (pictured) has 87k square feet of office space, over seven floors and is currently fully let to six tenants. The purchase brings total capital invested to £52m. The purchase price reflects a net initial yield of 10.0% and a capital value of £139 per square foot. The property provides a total passing rent of £1.3m per annum. The investment provides an average weighted unexpired lease term of 2.3 years to breaks and 4.5 years to expiry. AEW UK REIT aims to deliver an attractive total return to shareholders from investing predominantly in a portfolio of smaller commercial properties in the United Kingdom. The investment manager says that the company, “is currently under offer, or close to being under offer on, a range of similar deals and consequently expect to be able to make further announcements over the coming weeks.”
AEW UK REIT’s purchases 225 Bath Street in Glasgow for £12.2m : AEWU