AEW UK Core Property Fund has announced it has sold two office assets in Uxbridge and Luton for £13.45m. The sale of Rivercourt and Cresta House reflect net initial yields of 6.7% and 4.0% respectively.
Rivercourt was purchased by AEW in June 2014 and has been sold for £7.05m. The 22,585 sq ft property currently comprises office space across two floors and is located on Oxford Road, approximately a mile from Uxbridge town centre. Permitted development rights (PDR) for residential conversion had been secured and the departure of the tenant created an opportunity to market the property for alternative use buyers.
Cresta House, located on Alma Street in Luton, was purchased by AEW in March 2015 and has been sold for £6.40m, providing an internal rate of return of 15.2%. The majority of the 60,774 sq ft property is office accommodation but there are currently 7 retail units. PDR has been approved for 25,000 sq ft, around 50% of the office space, to be converted for residential use.
Richard Tanner, Portfolio Manager, AEW UK Core Property Fund, commented: “Having added value to both properties and securing PDR approval, we saw an opportunity to sell. We continue to look for creative asset management opportunities for properties in our portfolio, so that when it is time to dispose of an asset, we can attract a range of investors and developers from all areas of the market.”
