AEW UK REIT buys Wakefield business park – AEW UK REIT has announced the acquisition of Diamond Business Park in Wakefield for GBP4.2m.
The 201,543 sq ft multi-let property has a Net Initial Yield of 11.5% and comprises an industrial and office element. On the industrial side, there are 13 units totalling 172,584 sq ft leased to a range of companies including CB Imports Ltd and Compac UK Ltd. The 27,098 sq ft office space is subdivided into smaller suites. The main occupant is AFI-Uplift, the supplier of powered access lift machinery. The total property has a weighted average unexpired lease term (WAULT) of 3 years to break and 6 years to expiry.
The large site benefits from being situated in Wakefield, an established industrial location. The business park is strategically located at the intersection of the M1/M62 motorways, providing access to Manchester, Liverpool, Sheffield and beyond to London.
Alex Short, Portfolio Manager, AEW UK REIT, commented: “The key attractions to purchasing the park were its high yield and the relatively low capital value per sq ft. The site looks particularly valuable as it is located in an area of the country lacking in availability of similar industrial space. The relatively short unexpired lease length allows us to actively manage the estate which we hope will grow the income stream from the property going forward. The office element also creates the potential to add value via change of use in the long term.”
AEWU : AEW UK REIT buys Wakefield business park