UK real estate investment trust AEW UK REIT buys mixed-use asset in Bath
UK real estate investment trust AEW UK REIT has added a mixed-use asset in Bath city centre to its property portfolio.
The property investor paid £11.5 million for the “rare freehold island site” 52,000 sq ft asset.
It is located immediately adjacent to the South Gate Shopping Centre, which forms part of the city’s core retail provision. Bath Spa Train Station is less than a five minute walk from the property.
The property is currently let to five tenants across office and retail accommodation. AEW UK REIT said tenants were paying a “low average passing rent of circa £22 per sq ft” and that rent reviews would follow.
The firm said it expected “market conditions to remain favourable in this location given the low level of available and consented supply, coupled with strong demand for well-specified and well-located accommodation.”
Laura Elkin, portfolio manager of AEW UK REIT, said: “We are pleased to have purchased this very well-located, mixed-use asset at a day one yield that will be accretive to the company’s earnings and brings the REIT one step closer to full deployment, with just £3 million left to invest.
“Completion of the acquisition continues the strategic reinvestment of capital generated from recent sales into higher yielding assets in core urban locations.”
Pictured: SouthGate shopping centre and the city of Bath by Rwendland published under Creative Commons licence