AEW Long Lease invests in units in Kent – AEW UK Long Lease REIT (AEWL) has announced that it has purchased two industrial buildings on the Eurolink Industrial Estate, Sittingbourne for £3.9m. The purchase reflects a net initial yield of 6.3%. AEW is targeting an annual dividend of 5.5 pence per share paid quarterly, with an ambition to grow in line with UK inflation thereafter.
The property and tenant
The property comprises two warehouse buildings totalling 43,636 sq ft let to Doré Metals Services Southern Ltd, which has had its headquarters on the site since 2007. The lease provides a new 15 year term expiring in September 2033 and has 5 yearly RPI linked rent reviews. Other occupiers in the vicinity include Everest and B+M Steel.
Location
The site is located on the established Eurolink Industrial Estate in central Sittingbourne, north Kent, with access to the M2 and M20 and one mile from Sittingbourne station. The surrounding area comprises a mix of residential, industrial and commercial uses.
Comment from Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company
“Demand for industrial property in the South East makes this a great addition to our diverse portfolio. Given this strong demand, we think that the property provides good potential for rental growth over the long term, both from its inflation linked uplifts and in terms of open market levels as well.”
AEWL : AEW Long Lease invests in units in Kent