AEW UK REIT plc has announced that it has completed the sale of its industrial holding at Deeside Industrial Estate for £4,750,000, reflecting a capital value of circa £49 per sq ft.
The 96,597 sq ft industrial unit, known as Excel 95, was acquired in July 2017 for £4,310,000 (circa £45 per sq ft), reflecting a 7.9% net initial yield. The property was let to Magellan Aerospace, until they vacated in July 2022, paying a £250,000 dilapidations settlement. The Company has disposed of the vacant asset to an owner-occupier, with the price reflecting a circa 8% premium to the 31 March 2023 valuation. By disposing of the asset, the Company has also avoided a speculative refurbishment project costing approximately £1 million.
Following completion of the sale, the Company will have approximately £9.6 million to deploy on an attractive pipeline of higher yielding assets, which will be more accretive to the Company’s earnings.
Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented: “This disposal is yet another example of our successful strategy in action. Rather than carry out a lengthy refurbishment programme, we have taken the decision to recycle capital into attractive assets from our pipeline, which are expected to deliver a more accretive performance in the future. We expect to make further announcements in this respect in the coming months.”