LONDON (Alliance News) - AEW UK REIT PLC, a real estate investment trust which invests in smaller commercial properties in the UK, on Tuesday said it has acquired two neighbouring industrial warehouses totalling 221,145 square feet on Langthwaite Business Park, South Kirkby, let to Ardagh Glass Ltd.
The warehouses have a weighted average unexpired lease term of about one year to break and 2.5 years to expiry.
AEW REIT paid GBP5.8 million net of acquisition costs for the properties, reflecting a net initial yield of 11%, reversionary yield of 12% and a capital value of GBP26.0 per square foot.
The properties are situated on Langthwaite Business Park, South Kirby, West Yorkshire.
"We are pleased to have acquired these industrial warehouses, which are well located in an area where there is a dearth of available accommodation and we feel positive that the pricing of this asset is well supported by its underlying vacant possession value," Alex Short, REIT portfolio manager at AEW UK Investment Management LLP, said in a statement.
Shares in the real estate investment trust were untraded on Tuesday late morning, having last traded at 101.34 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Aew Uk Reit (AEWU)