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(Alliance News) - AEW UK REIT PLC on Tuesday said it has completed the sale of a 35 acre site at Geddington Road, Corby, for a price of GBP18.8 million.
The real estate investment trust company said the asset in Norfolk, England, was acquired in February 2018 for GBP12.4 million and has been fully let to Gefco UK Ltd, producing net income yield against the purchase price of 10%.
The Corby site has been the company's largest asset by value, with the lease to Gefco having an unexpired term of just over one year at the date of sale.
AEW UK REIT said it has not invested any capital expenditure in the asset during its ownership. Its internal rate of return from the asset was more than 30%.
Following completion of the Corby sale, the company holds cash of GBP27 million. However, AEW UK REIT said its rental income will now fall by GBP1.3 million per annum until further investments are made.
Looking ahead, the company, in conjunction with its investment manager, is evaluating the optimum use of cash balances in the current environment, it said.
Meanwhile, AEW UK REIT said its investment manager has continued to maintain close contact with all tenants over recent weeks. As at Tuesday, 75% of rent has so far been collected; however, this figure is expected to increase to 87% once payments have been received both from tenants making monthly payments and those on longer term payment plans that have not yet fallen due.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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