AEW UK REIT’s shopping spree continues with the purchase of three more properties for £12.2m.
The first comprises a prominent 49,764 sq ft town centre leisure investment in Southend-on-Sea, let to Odeon Cinemas Limited with a WAULT of approximately 7 years to expiry. The property was acquired for GBP5.7m (net of acquisition costs) reflecting a net initial yield of 8.4%, a reversionary yield of 9.1% and a capital value of GBP115 per sq ft. The property is situated in the town centre adjacent to Victoria Plaza Shopping Centre and comprises an 8 screen cinema.
AEW UK REIT has also acquired Cleaver House, Runcorn; a single let industrial unit forming part of the Sarus Court development that was acquired by the Company in October. The acquisition price of GBP910,000 (net of acquisition costs) reflects a net initial yield of 7.9%, a reversionary yield of 8.3% and a capital value of GBP57 per sq ft. The property is fully let to Performance Products Limited with expiry in 2021 and a tenant break option in 2018.
In addition, they bought Oak Park, a 188,515 sq ft industrial complex in Droitwich, let to Egbert H. Taylor & Co Limited (trading as Taylor Bins) with a WAULT of approximately 7 years to expiry. The property has been bought for GBP5.625m (net of acquisition costs) reflecting a net initial yield of 10.4%, a reversionary yield of 10.4% and a capital value of GBP30 per sq ft.
With these purchases, the Company has approximately GBP100m invested in 20 properties and including GBP9.75m in AEW UK’s Core Property Fund.
AEWU : AEW shopping spree continues