AEW UK Core Property Fund is pleased to announce the acquisition of Hengrove Leisure Park, Bristol for £13.9m, reflecting a net initial yield of 7.3%.
The 87,873 sq ft park is located within the suburb of Hengrove, 3.4 miles from Bristol city centre. The park is comprised of a diverse range of properties and tenants, including a 14 screen Cineworld multiplex cinema, Gala Bingo, Premier Inn and a number of other restaurants and fast-food outlets. The weighted average unexpired lease term is 11.5 years.
The 19 acre site is located within a wider area that is continuing to improve with increasing amounts of investment in new residential and commercial developments.
The park is held on a 999-year lease from Bristol City Council. The surrounding area includes Imperial Retail Park, as well as other business parks, industrial estates and residential accommodation.
Michael Shears, Assistant Portfolio Manager, AEW UK Core Property Fund, commented: “This latest acquisition is a fantastic addition to our portfolio, with its strategic long-term value and its well-established reputation as a leisure destination in the area. The property benefits from an attractive yield profile with opportunities to enhance the offering at the park and add value through active asset management. We continue to look for properties that will increase the diversity of our portfolio, both in terms of location and sector.”
Montagu Evans acted for AEW providing occupational and investment advice.