AEW UK Core Property Fund has announced the acquisition of an industrial estate in Stanton, Suffolk and a Chelmsford department store for a combined total of just in excess of £20m.
DHL Stanton is an industrial asset in Shepherd’s Grove Industrial Estate East located near Bury St Edmunds in North Suffolk. The site, which is over 650,000 sq. ft. in size, has been purchased for £15.6m and is fully let to DHL Supply Chain Limited. Acting as a crucial arterial location for the company as its East of England hub, the site is equidistant from Ipswich and Cambridge and easily accessible to the M11 and Felixstowe Port. It has a WAULT of five years and a net initial yield of 10.9%.
AEW Core has also acquired 27 High Street, Chelmsford, a prime retail department store in the heart of Chelmsford city centre. The 126,793 sq. ft. property which was acquired with a low capital value per sq. ft., is currently occupied by Debenhams and has significant potential for repurposing to alternative uses such as leisure, offices and residential. The asset has been acquired for £4.8m.
Chelmsford is a popular and affluent commuter town close to London. The property is situated in a prime position on the pedestrianised High Street, opposite M & S, between the Bond Street Development and Meadows shopping centre and experiences a very high level of footfall.
Commenting on the acquisitions, Michael Shears, AEW UK Core Property Fund said, “We are delighted to announce these two additional acquisitions for AEW UK Core Property Fund. The acquisition of the East of England distribution hub of one of the world’s largest logistics companies, DHL, and the purchase of a prime department store site in the heart of Chelmsford both offer exciting asset management opportunities to maximise returns to investors.”