AEW UK REIT Announced That They Have Acquired a Number of Industrial Assets

AEW UK REIT owns a portfolio of diverse portfolio of 31 commercial properties in different regions around the UK. The company has announced that they have acquired a number of industrial assets in Basildon in Essex, and Runcorn in Cheshire. These acquisitions are thought to have been obtained for around £2.6 million.

The Basildon asset is a 33,000 sq. ft. single-let industrial use building that is situated on the already established Pipps Hill Industrial Estate. This site is located close to the A127 and is around five miles away from Junction 29 of the M25. The purchase price of this asset was £2 million because of the attractive net yield of 9.3% for the site as well as a reversionary yield of 8.8%. The asset has a low capita value of £64 per sq. ft. and the industrial building will be let to Merson Signs Ltd on a new 10-year lease for a passing rent of £6 per sq. ft.

The second asset is the Runcorn asset has had an initial yield of 7.8%. This Runcorn asset marks the completion of AEW’s acquisition of the whole Sarus Court industrial estate. The company already owned five of the six units on the industrial estate, which provides modern units that are finished to a high specification and are between 11,000 and 17,000 sq. ft. These industrial units have been let to several light-industrial occupiers through a weighted average unexpired lease, or WAULT, from more than 4 years. The new acquisition is currently let to Dimension Data until 2020 and it is thought that the unit offers a great deal of reversionary potential. The passing rent for this property is £4.50 per sq. ft. Sarus Court is a part of the Manor Park industrial estate located to the west of Runcorn and five kilometers away from the Mersey Gateway Project due to finish in autumn this year.


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BDC 317 : Jun 2024