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LONDON (Alliance News) - AEW UK REIT PLC on Tuesday said it has acquired a portfolio of three single-let industrial warehouses in Basingstoke, Rotherham and St Helen's, comprising approximately 232,523 square feet.
The properties are fully let to Wella (UK) Holdings Ltd, Sapa Components UK Ltd and Kverneland Group UK Ltd.
The portfolio provides a weighted average unexpired lease term of about five years to break and six years to expiry. The portfolio was acquired for GBP9.0 million, net of acquisition costs, reflecting a net initial yield of 9.0%, reversionary yield of 9.6% and a capital value of GBP39 per square foot overall.
Following the purchase, the company has just over GBP120.0 million invested in 25 properties, including GBP9.8 million in AEW UK's core property fund.
Alex Short, REIT portfolio manager at AEW UK Investment Management LLP, said: "We are pleased to have acquired these assets, which are well located and provide a medium term income stream from strong covenants to the company at an attractive return."
Shares in AEW UK REIT were down 0.4% at 96.75 pence on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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