AEW UK REIT has announced the completion of a further acquisition for £5.3m (net of acquisition costs) of 1-15 Fargate & 18-36 Chapel Walk, Sheffield. The two properties provides a total of 40,128sq ft with 8 retail units spread over basement, ground and first floors. Two of the retail units front onto the pedestrianised Fargate Street with six fronting the adjoining retail arcade of Chapel Walk. Tenants include Paperchase, H Samuel and Claire’s Accessories with the lettings providing a WAULT of 3.8 years to breaks and 5.3 years to expiry. Upper floors from first to fifth are currently vacant with development potential for a number of uses including student accommodation, subject to planning. The purchase price reflects a net initial yield of 8.25%, inclusive of rental guarantees, and a reversionary yield of 9.1%, following the sale of the upper parts.
Following this purchase, the Company has approximately£65m invested, including £9.75m in AEW UK’s Core Property Fund.
AEWU : AEW UK REIT invests in Sheffield