Business
Acquisition of high-yielding asset
Acquisition of high-yielding asset.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n\n14 March 2025\n \nAEW UK REIT plc\n \nAcquisition of high-yielding asset in affluent town\n \nAEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has completed the purchase of a freehold, high-street retail asset at 13/13A, 114-119, 121-123 Bancroft and 3-4 Portmill Lane (the \"Property\") in the affluent commuter town of Hitchin for £10,000,000. The purchase price reflects an attractive net initial yield of 8.31% and a capital value of £213 per sq. ft.\n \nThe Property, located in the centre of Hitchin's high-street retail pitch, provides 46,905 sq. ft. of space across 12 retail units and a standalone office building, as well as car parking and service yards. The retail elements of the Property are fully let to a strong line up of 12 tenants, with recent leasing activity evidencing the strength of the location. Major tenants include Marks & Spencer plc, Next Holdings Ltd, Vodafone Ltd, The White Company and Holland & Barrett. The vacant office element to the rear provides various asset management options in the short-to-medium term, including new lettings or residential conversion.\nHitchin is a busy market town located in Hertfordshire with an affluent catchment. The town is served by rail connections to both London and Cambridge, underpinning its attractiveness as a commuter location.\nThe acquisition demonstrates the Company's swift and ongoing redeployment of sale proceeds from the recent disposal of Central Six Retail Park in Coventry, with a significant amount of the remaining proceeds also under exclusive negotiation. In considering the re-deployment of the proceeds from Central Six, the Company has identified an attractive pipeline of investments available for purchase in the current market and is considering available growth opportunities for further earnings accretive acquisitions.\"\n \nCommenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said: \"We are delighted to have purchased this well-located asset at a day one yield that will enhance the Company's earnings. Completing this acquisition marks a significant milestone in our strategy to reinvest capital generated from the recent successful sale of our retail park in Coventry into higher-yielding and value-add assets. We conti...