LONDON (Alliance News) - AEW UK Long Lease REIT PLC said on Monday it has acquired two industrial buildings in Sittingbourne, Kent, for GBP3.9 million, reflecting a net initial yield of 6.3%.
The property consists of two warehouse buildings totalling 43,636 square feet in the Eurolink Industrial Estate, and is let to metals supplier Dore Metals Services Southern Ltd. The lease provides a new 15 year term expiring in September 2033.
"Demand for industrial property in the South East makes this a great addition to our diverse portfolio. Given this strong demand, we think that the property provides good potential for rental growth over the long term, both from its inflation linked uplifts and in terms of open market levels as well," said Portfolio Manager Alex Short.
Shares in AEW UK Long Lease REIT remained flat at 95.28 pence on Monday.