AEW UK REIT buys Portsmouth retail property – AEW UK REIT has announced the acquisition of 208-220 Commercial Road and 7-13 Crasswell Street, Portsmouth for GBP6.4m.
The asset provides a net initial yield of 9.6% and is fully let to seven retail tenants and one office tenant providing a WAULT of 4 years to expiry. The 15,553 sq ft retail property is situated within the prime pedestrianised pitch of Commercial Road within Portsmouth’s city centre. The property is also directly opposite the main covered shopping centre, The Cascades, which is anchored by Primark, H&M, Next and Marks and Spencer.
As part of the ‘Shaping Portsmouth’ development initiative, the city is set to receive GBP1 billion of investment from both public and private sector organisations over the next 20 years.
Alex Short, Portfolio Manager, AEW UK REIT, commented: “We are pleased to have completed this latest acquisition which we expect to prove accretive to the Company’s yield both on an initial and equivalent basis. When acquiring High Street retail assets we appraise a conservative scenario and therefore we were attracted by both the central location of these units and also the asset management and lease renewal opportunities that the asset provides. The addition of this property complements our existing portfolio and we are pleased to be investing again following the completion of our successful capital raise in October.”
On 20 October AEW UK REIT announced that it had raised GBP28.1m through the initial issue of the Share Issuance Programme, as described in the prospectus published by the company on 28 September 2017.
AEWU : AEW UK REIT buys Portsmouth retail property