The Board of AEW UK REIT has announced the acquisition of a portfolio comprising of 3 industrial warehouses totalling 65,500 sq ft. Moorside Road, Swinton; Wagon Road, Mossley and Clarke Road, Milton Keynes, all trading as Nationwide Crash Repair Centres, have been bought for GBP3.06m (net of acquisition costs) reflecting a net initial yield of 8.3% and a capital value of £47 per sq ft.
The properties in Swinton and Mossley are both located within 10 miles of Manchester, close to junctions 2 and 23 of the M60 respectively, whilst Clarke Road forms part of the Mount Farm Industrial Estate close to junction 13 of the M1. The leases, expiring in August 2023, provide a WAULT of just under 8 years and produce a total rental income of £269,000 pa which is considered to be rack rented. The income is guaranteed by Nationwide Accident Repair Services Ltd.
With these purchases, the Company has approximately £77m invested, including £9.75m in AEW UK’s Core Property Fund, and 14 properties.
AEWU : AEW UK REIT buys three warehouses