The Board of AEW UK REIT has announced the acquisition of two mixed use assets in Nottingham and Blackpool for a total of GBP13.2m, net of acquisition costs. With these two acquisitions the Company has now fully invested its equity capital and is geared to 20% of Gross Asset Value, in line with its investment strategy.
Nottingham, acquired for GBP8.15m, is located on Wheeler Gate with frontage to Old Market Square within the retailing core of the City Centre. The property provides a total of 71,260 sq ft and is let to 6 retail tenants and 9 office tenants including Poundland, Costa and Lakeland providing a WAULT of approximately 4.5 years to break and 5.2 years to expiry. The acquisition provides an initial yield of 9.0%, a reversionary yield of 9.9% and a capital value of GBP114 per sq ft.
Blackpool, acquired for GBP5.05m, is prominently located directly adjacent to the famous Blackpool Tower. The property extends to 100,079 sq ft and provides 3 retail units at ground floor and basement let to Poundland, Sports Direct and J D Wetherspoons providing a WAULT of approximately 7.5 years to break and 10 years to expiry. The upper floors of the property are currently vacant and have been de-listed for rating purposes but provide strong potential for alternative uses which the Company is currently investigating. The acquisition provides an initial yield of 9.5%, a reversionary yield of 8.4% and a capital value of GBP50 per sq ft.
With these purchases, the Company has invested just over GBP123m in 27 properties, including GBP9.75m in AEW UK’s Core Property Fund.
AEWU : AEW UK REIT now fully invested