AEW UK REIT(AEW) has announced that it has acquired Lockwood Court, a 187,794 square foot warehouse located on the Parkside Industrial Estate in Leeds, for a gross purchase price of £7.3m, reflecting a initial yield of 7.7%.
About Lockwood Court
The Lockwood Court warehouse asset is fully let to LWS Yorkshire Ltd, a logistics and storage provider for Harrogate Spring Water, on a 10-year lease from October 2018. AEW says that the lease provides a low passing rent of £3.22 per square foot which, together with tight supply, forms a strong base for future potential rental growth.
The Parkside Industrial Estate is located two miles south of Leeds City Centre and close to Junction 25 of the M62 and Junction 40 of the M1. AEW says that it Parkside is a well-established industrial and commercial area with a history of attracting regional and national occupiers.
AEW UK REIT’s Portfolio
Following the acquisition of Lockwood Court, AEW says that its borrowings now show a gross loan to value of 25.0%. The Company’s holdings comprise a diversified portfolio of regional UK commercial property assets that comprise Industrial (47.1%, Office (21.7%), Retail (16.0%) and Other (15.2%).
About AEW UK REIT
AEW UK REIT (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than £10 million), on shorter occupational leases in strong commercial locations across the United Kingdom. It invests in freehold and leasehold properties across the whole spectrum of the commercial property sector (office properties, retail warehouses, high street retail and industrial/warehouse properties) to achieve a balanced portfolio with a diversified tenant base. The Company has a focus on active asset management, repositioning the properties and improving the quality of the income stream.
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team comprising 23 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world’s largest real estate managers, with just over EUR63.5bn of assets under management as at 30 September 2018. In Europe, as at 30 September 2018, AEW Group managed nearly EUR30bn in value in properties of all types, with close to 400 staff located in 9 offices.