AEW UK acquires industrial building in Peterborough for c. €6.4m (GB)

AEW UK REIT

AEW UK REIT, which owns a diversified portfolio of 32 regional UK commercial property assets, announces the acquisition of a c. 182,000 ft² single-let industrial building in Peterborough, for c. €6.4m (£5.7m), reflecting a Net Initial Yield of 8.64% and a capital value of c. €34.6m (£31) per ft².

 

The asset, which is located within the Eastern Industrial Estate, is fully let to Walstead Investments for a term of just under 4 years to expiry. The passing rent of €3.22 (£2.88) per ft² is low in comparison to some of the recent lettings in the city and the immediate sub region.

 

Eastern Industrial Estate is a well-established estate in the Fengate area and comprises a mix of industrial units, offices, trade counters and a number of car showrooms. The estate is well located for access to the national motorway network, being approximately 1 mile off the A1139, which provides access to junction 17 of the A1(M).

 

Commenting on the deal, Alex Short, the Company's Portfolio Manager at AEW UK Investment Management, said, "Peterborough has seen robust occupational performance over the past 24 months with overall vacancy levels for properties over 150,000 ft² falling below 4%. The acquisition pricing is attractive as it is supported by the asset's underlying vacant possession value which is an important metric for the protection of downside risk."

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