Business
Sale of multi-let industrial estate near Droitwich
Sale of multi-let industrial estate near Droitwich.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n\n24 July 2024\n \nAEW UK REIT plc\n \nSale of freehold multi-let industrial estate near Droitwich\n \nAEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has completed the sale of Oak Park Industrial Estate, Droitwich for £6,300,000 reflecting a net initial yield of 7.95% and a capital value of £33 per sq. ft. A sale at this price represents a circa 33% premium to the 31 March 2024 valuation. Following the completion of three new lettings, which added £272,000 of annual rental income, the property is now fully let. With impending capital expenditure on refurbishment, we believe we have maximised value of the asset in the medium term.\n \nThe industrial estate was bought in December 2015 for £5,625,000, reflecting a 10.4% net initial yield and a capital value of £30 per sq. ft. The estate was originally single let to Egbert H Taylor & Co Limited (trading as Taylor Bins), a strong tenant covenant with a WAULT to expiry of approximately seven years. The tenant has since downsized on the estate.\n \nCommenting on the sale, Henry Butt of AEW UK REIT said: \"Following a competitive marketing process, we are pleased to have sold this asset at a healthy 33% premium to March's valuation, having completed the asset management strategy, thereby maximising value in the medium term. The Company's capital deployment focus continues to be on reinvesting into the existing portfolio where capital expenditure will enable future performance gains.\"\n \n \n \n \nENDS\n \n \nAEW UK\n\n\n\n\nHenry Butt\n\n\[email protected]\n+44(0) 20 7016 4869\n\n\n\n\nAEW Investor Relations\n\n\[email protected]\n\n\n\n\n\n\n\n\n\n\n\n\n \nCompany Secretary\n\n\n\n\n\n\n\nLink Company Matters Limited\n\n\[email protected]\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \nTB Cardew\n\n\n \[email protected]\n\n\n\n\nTania Wild\nHenry Crane\n\n\n+44 (0) 7425 536 903\n+44 (0) 7918 207 157\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \nPanmure Liberum\n\n\n\n\n\n\n\nDarren Vickers\n\n\n+44 (0) 20 3100 2222\n\n\n\n\n \n \n \nNotes to Editors\n \nAbout AEW UK REIT\n \nAEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to sha...