AEW UK REIT has picked up a multilet industrial estate in Weston-super-Mare.
The company has struck a £5.5m deal for Westlands Distribution Park, a deal that reflects a capital value of £175,000 per acre and a net initial yield of 6.4%.
The 323,437 sq ft estate is let to 15 tenants, including North Somerset District Council, which accounts for 30% of income. Passing rent is £1.50 per sq ft.
Portfolio managers Alex Short and Laura Elkin described the site as “an excellent fit for the portfolio as it offers significant potential for future value accretion in addition to its very low level of passing rent which provides strong prospects for future rental growth”.
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