AEW UK REIT has bought a 5.7-acre retail park in Shrewsbury at an 8.7% yield.
Arrow Point Retail Park was acquired for nearly £8.4m. The purchase price reflected a capital value of £88 per sq ft. The park was previously owned by Morris Property.
The park’s tenants include the British Heart Foundation, Poundstretcher and Charlie’s Stores.
Alex Short, portfolio manager at AEW UK REIT, said: “This is an excellent fit for our portfolio and an excellent new contributor to AEWU’s income stream, putting to use the profit from the sale of the Solihull office asset in February this year.
“Retail remains a small percentage of the portfolio’s composition and, while we continue to take a cautious approach to this sector, the tenant profile of the site is strong and we are confident that we can manage the assets to drive value for shareholders over the medium to long-term.”
Following completion of its Shrewsbury retail park purchase, retail represents 15.6% of the company’s £187.4m portfolio.
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