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LONDON (Alliance News) - AEW UK REIT PLC Wednesday said it has acquired two properties for a total consideration of GBP14.7 million.
The real estate investment trust said it bought Sandford House in Solihull town centre for GBP5.4 million and 69-75 Above Bar Street in Southampton for GBP9.3 million.
Sandford House provides 34,418 square feet of office space with parking for 130 vehicles and is fully let to a government department, with a tenant break option in just under two years. It has a net initial yield of 10.9% and a capital value of GBP157 per square foot.
69-75 Above Bar Street is a retail parade of three units extending to 27,247 square feet. AEW said 40% of the income is secured against Barclays Bank PLC, with other units occupied by retailers Blacks and Waterstones, providing an average weighted unexpired lease term of 6.2 years. It has a net initial yield of 8.8%.
AEW said these are the second and third purchases it has made and now has around GBP33 million invested.
"We are pleased to have now completed three acquisitions for the company. Purchases are progressing well and in line with our timetable as set out to investors prior to the REIT launch. We currently have under offer, or are working to agree terms on, a range of similar deals and therefore expect to be able to make further announcements over the coming weeks," Portfolio Manager Alex Short said in a statement.
Shares in AEW were trading up 0.5% at 103.49 pence Wednesday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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