Wed. Sep 20th, 2023
    AEW UK REIT PLC Nears Full Deployment with Purchase of Bath Property

    AEW UK REIT PLC has announced that it is nearing full deployment after acquiring a mixed-use asset in Bath city centre for £11.5 million. The London-based real estate investment trust focuses on UK regional commercial property and has invested the majority of its funds, with approximately £3 million still available for further investment.

    The Bath property, which was purchased for a net initial yield of 8.0% and a capital value of £223 per square foot, is situated on a freehold island site and is conveniently located adjacent to the South Gate Shopping Centre. Moreover, it is within a short walking distance of Bath Spa Train Station and several notable tourist attractions, including Bath Cathedral, the Roman Baths, and Pulteney Bridge.

    Portfolio Manager Laura Elkin expressed her satisfaction with the purchase, highlighting the property’s strategic location and day one yield, which will contribute to the company’s earnings. This acquisition represents another step towards the REIT’s goal of deploying its remaining funds and reinvesting the proceeds from recent sales into higher yielding assets in core urban areas.

    AEW UK REIT’s shares were trading 0.2% higher at 98.80 pence each in London on Friday morning.

    – Alliance News

    – Real estate investment trust (REIT): A company that owns, operates, or finances income-generating real estate
    – Net initial yield: The annual income generated by an investment property expressed as a percentage of its initial cost
    – Capital value: The estimated market price of a property per square foot

    Note: The article is based on the source article from Alliance News, written by Holly Beveridge.