Business
Acquisition of high yielding mixed use asset, York
Acquisition of high yielding mixed use asset, York.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n\n19 July 2023\n \nAEW UK REIT plc\n \nAcquisition of high yielding mixed use asset in York\n \nAEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has completed the purchase of a freehold, mixed-use asset in York city centre for £10,020,000, reflecting an attractive net initial yield of 9.3%.\nThe 99,769 sq ft asset is multi-let to five tenants. 75% of the income is received from National Car Parks Ltd (\"NCP\"), who have occupied the 297-space car park since 2005 and have a further nine years remaining on their lease. The lease benefits from a 2027 rent review which will increase rent payable in line with the Retail Price Index, uncapped, resulting in a forecast reversionary yield in excess of 10%. NCP is one of the UK's largest car park operators with an estate of approximately 189,000 spaces over 642 sites. The company is owned by Park24, a Japanese based multi-national parking operator, and the Development Bank of Japan. Another four tenants occupy the ground and first floor retail and office accommodation fronting onto George Hudson Street.\n \nThe site totals 0.8 acres and is located inside the York City Wall, bordering the historic centre of the city, within the \"Micklegate Quarter\". It is situated in a prominent corner position on George Hudson Street and Tanner Row, within a 10-minute walk of key visitor attractions, including York Minster, the Yorkshire Museum and the York Dungeon. York's key retail provisions at Coppergate Shopping Centre, Coney Street, Davygate and Parliament Street are all within a 7-minute walk.\nFollowing purchase of York, cash available for deployment in to high yielding pipeline assets is circa £15.0m.\nCommenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said, \"We are pleased to have purchased this very well-located mixed-use asset at a day one yield that will be accretive to the Company's earnings. Our due diligence has shown that NCP trades well from the location and we expect this to continue given the popularity of York as a destination. Completion of the acquisition marks the strategic reinvestment into higher yielding assets of capital generated from recent sales. We continue to analyse an interesting pipeline of potential acquisitions and expect to make further...