Business
Acquisition of Central Six Retail Park, Coventry
Acquisition of Central Six Retail Park, Coventry.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \n\n\nAEW UK REIT plc (AEWU)\n\n\n\nAEW UK REIT plc: Acquisition of Central Six Retail Park, Coventry08-Nov-2021 / 09:38 GMT/BSTDissemination of a Regulatory Announcement, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n\n8 November 2021\n\n \n\nAEW UK REIT Plc \n\n \n\nAcquisition of Central Six Retail Park, Coventry\n\n \n\nAEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce the acquisition of the 11.91 acre Central Six Retail Park in Coventry for a purchase price of £16,411,000 / £110 per sq ft. The purchase price reflects a net initial yield of circa 11%, with an anticipated reversionary yield of circa 12.5%. The acquisition is accretive to the EPRA EPS and takes AEWU close to full investment, having recently completed the sales of two of its industrial holdings in South Kirkby and Basingstoke at prices 87% and 73% above their purchase prices, respectively. \n\nThe acquisition demonstrates the Manager's view that there continue to be interesting opportunities to acquire assets that provide strong income yields to support the ongoing dividend payment, while also enhancing the capital performance of its assets. The site presents opportunities to add value through active asset management by renewing current tenancies and securing new tenants on the park. This purchase will be accretive to AEWU's income return and it is anticipated that asset management initiatives will result in NAV growth.\n\nThe site occupies a strategic and central location, approximately 0.7 miles away from Coventry city centre and adjacent to Coventry Railway Station and the Friargate Regeneration area. The retail park is highly accessible and provides 148,765 sq ft of modern purpose-built retail space with parking for 635 cars. The site cover is just 27%. Units are let to household name retailers including TK Maxx, Next, Boots, Sports Direct, Burger King and Poundland. Coventry has one of the fastest growing populations in the UK outside of London. Between 2019 and 2024 it is expected to grow by 1.25% per annum, ranking the city second out of 200 in the PROMIS Centres Retail Report.[1] Coventry was named the UK's City of Culture 2021, which is estimated to generate an additional £80m for the local economy. \n\n \n\nThe tenants at Central Six R...