AEW UK Long Lease buys Wandsworth gym – AEW UK Long Lease REIT has completed the acquisition of 212 Wandsworth Road, London for GBP4.4m. The property, which is fully let to Pure Gym Limited at a low passing rent of GBP11.60 per sq ft, provides an unexpired lease term of 10.2 years to break and 15.1 years to expiry, with five yearly RPI linked reviews. The acquisition price reflects a net initial yield of 5.1%.
The 19,900 sq ft property, constructed in 2012, is situated within close proximity to the new Nine Elms Northern Line London Underground station which is planned to open in 2020. In addition the Borough of Lambeth is currently undergoing extensive redevelopment as part of a 561 acre regeneration plan to transform the area into a residential, cultural and business quarter, increasing employment, residents and investment in the local area.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: “We are very pleased to have completed this latest acquisition in a key inner London growth area. One of the property’s particular attractions is its comparatively low passing rent which provides value add opportunities for the future. We continue to see good momentum in the coming months and expect to announce further acquisitions in the near future.”
The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to GBP22.1m. In addition to this, the Manager has a further 6 assets under offer and expects to make additional announcements in the coming weeks.
AEWL : AEW UK Long Lease buys Wandsworth gym