AEW UK REIT plc (AEWU) has completed the sale of Oak Park Industrial Estate, Droitwich for c. €7.4m reflecting a net initial yield of 7.95%. A sale at this price represents a c. 33% premium to the 31 March 2024 valuation. The three new lettings added c. €318,000 of annual rental income and the property is now fully let.
The industrial estate was bought in December 2015 for c. €6.6m reflecting a 10.4% net initial yield. The estate was originally single-let to Egbert H Taylor & Co Limited (trading as Taylor Bins), a strong tenant covenant with a WAULT to expiry of approximately seven years. The tenant has since downsized on the estate.
Henry Butt of AEW UK REIT said: "Following a competitive marketing process, we are pleased to have sold this asset at a healthy 33% premium to March's valuation, having completed the asset management strategy, thereby maximising value in the medium term. The Company's capital deployment focus continues to be on reinvesting into the existing portfolio where capital expenditure will enable future performance gains."
Image source - Pexels.
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