AEW UK REIT plc has announced that, as anticipated in it’s NAV update on the 27th July, the sale of its ownership at Eastpoint Business Park in Oxford has completed on 8th August for £29,000,000. The sale of the property at Moorside Road in Swinton for £1,700,000, completed on 9th August. Following these disposals, the Company is pleased to announce that it has unconditionally exchanged contracts to acquire a high yielding asset located in Glasgow at a price of £2,600,000 reflecting a low capital value of £99 per sq ft and providing an attractive net initial yield of 7.4%.
The Glasgow asset comprises a solus leisure and retail warehousing unit let to JD Sports Gym Ltd, which operates 74 gyms in the UK and is a subsidiary of JD Sports Fashion Plc. It is located fronting the A81 Craigmont Drive, approximately 2.5 miles north-west of Glasgow city centre. The site also contains a vacant plot of land which may be suitable for redevelopment over the medium term, subject to planning.
The lease provides an unexpired lease term of 10.6 years, benefitting from five-yearly upward-only reviews. The sale is due to complete in the week commencing 15 August.
Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said, “With the completion of two major sales this month, we are very pleased to have exchanged this acquisition which will provide an attractive income stream for the portfolio. The asset, located in a prominent position within a major UK city, has the potential for asset management to add further value over the longer-term. We have been actively seeking value assets such as this and are pleased that all incoming capital has now been committed to purchases that are under exclusivity. We expect to make further purchase announcements in this respect in due course”.