(Alliance News) - Real estate investment trust AEW UK REIT PLC on Friday said it has acquired Railway Station Retail Park in Dewsbury for GBP4.7 million.
AEW said that the retail park's purchase price reflects a low capital value of GBP82 per square foot and provides a net initial yield of 9.4%.
The company added that the 6.04 acre retail park is currently fully let, with a low average passing rent of GBP8.28 per square foot. Tenants include Sports Direct, Mecca Bingo, and Fieldrose Ltd, trading as KFC.
The retail park is situated on the edge of Dewsbury town centre. AEW said that Dewsbury has a tight supply of retail warehousing stock, with no current vacancies within the town.
Portfolio Manager Laura Elkin said: "This latest acquisition supports our view that the current market continues to provide investment opportunities that deliver dividend accretive income streams while also providing future potential for capital growth."
"Our work undertaken on the tenants of the park has shown that they trade well from the location, and we expect an attractive level of income to be sustained," Elkin added.
Shares in the London-based company were up 0.2% to 124.00 pence each in London on Friday morning.
By Sophie Rose; sophierose@alliancenews.com
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Aew Uk Reit (AEWU)