AEW UK Real Return Fund acquires B&M industrial units for £4.2m

AEW UK Real Return Fund has announced the acquisition of two industrial units leased to Barclay & Mathieson Ltd in Sheffield and Cheadle for a total of £4.2m.

The first property is situated in Tinsley Industrial Estate on Coleford Road, a prominent industrial location approximately 2 miles from Sheffield City Centre. AEW purchased the 38,104 sq ft asset for £2.4m at a net initial yield of 6.5%.

The second is a 27,040 sq ft unit located on Stanley Green Industrial Estate in Cheadle Hulme, a popular retail commercial and residential area in Stockport. It was purchased for £1.9m, reflecting a net initial yield of 6.7%.

Both units were purchased freehold, with separate lease terms of 20 years to expiry and 5 yearly reviews linked to RPI.

Ian Mason, Portfolio Manager at AEW UK Real Return Fund, commented: “We’re delighted to have purchased this portfolio with its long lease term with inflation linked reviews and attractive yield. With this acquisition the Fund continues to grow and diversify across both traditional and alternative sectors. The Fund’s portfolio is well positioned to be defensive in the light of Brexit uncertainty and we continue to see a strong pipeline of attractive investment opportunities.’’