Business
Acquisition of two high yielding retail assets
Acquisition of two high yielding retail assets.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \n \n 1 December 2022\n \n \n \n \n \n \n \n \n AEW UK REIT Plc\n \n \n \n \n \n \n \n \n \n Acquisition of two high yielding retail assets\n \n \n \n \n \n \n \n \n \n AEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has unconditionally exchanged on the purchase of a 67,020 sq ft mixed-use block located in Bath city centre at a price of 13,000,000, reflecting a low capital value of £194 per sq ft and an attractive net initial yield of 8.5%. Completion of the asset purchase is expected later this week. The Company has also completed the purchase of a freehold retail asset in the London Borough of Bromley for a price of 5,300,000, reflecting a low capital value of £101 per sq ft and an attractive net initial yield of 8.7%. Following these two acquisitions, the Company will have circa £7 million to deploy on other new purchases while retaining sufficient cash for working capital purposes.\n \n \n The asset in Bath, known as Northgate House, provides 48,805 sq ft of retail accommodation fronting on to Bath's\n High Street, Upper Borough Walls and Union Passage. The retail accommodation is let to 11 tenants anchored by TK Maxx which has recently renewed its commitment to the location by agreeing the removal of a tenant break option. Retail lettings provide a weighted unexpired lease term in excess of five years. The remaining 18,215 sq ft of accommodation comprises grade A specification offices recently refurbished by the vendor. The office accommodation is fully let to a wholly owned subsidiary of Regus Group until 2032, trading as co-working brand, Spaces.\n \n \n The Bath office market is characterised by tight supply and Spaces provides the largest and only international brand of serviced office accommodation trading in the city. The office passing rent of £22 per sq ft provides a low base from which the Manager hopes to grow income due to a recent outstanding rent review.\n \n \n Northgate House is centrally located in Bath between Union Street, Bath's prime retail pitch, and High Street which links to the famous landmark of Pulteney Bridge. Bath is a designated UNESCO World Heritage Site and one of the UK's top tourist destinations attracting some 6.25 million visitors per annum.\n \n \n The asset is held leasehold from...