AEW UK Core Property Fund has announced the acquisition of The Kursaal in Southend-on-Sea and Grazebrook Industrial Park in Dudley for a total of £14.9m.
The Kursaal is located in Southend-on-Sea at the junction of Eastern Esplanade and Southchurch Avenue. The historic site first opened in 1901 and is considered to be the first theme park in the world. The property comprises a Tesco supermarket, bowling alley and casino. The property was purchased for a gross price of £7.5m, reflecting a net initial yield of 9.8% and has a weighted average unexpired lease term of 11 years.
Grazebrook Industrial Park is located 1.5 miles south west of Dudley and 8 miles west of Birmingham city centre. The 180,000 sq ft estate is comprised of four industrial blocks and one office building let to a mixture of national and local occupiers. The property was purchased for £7.4m, reflecting a net initial yield of 6.9%.
Richard Tanner, Portfolio Manager, AEW UK Core Property Fund, commented: “We are delighted to have acquired these two properties. They complement the existing assets in the portfolio and have the potential for rental growth and asset management opportunities over the long term. We continue to see an attractive pipeline of opportunities in both the industrial and alternative property sectors.”
