AEW UK REIT has sold two industrial assets for a combined £16.1m and plans to make further purchases.
Lockwood Court in Leeds sold for £9.65m, 9.7% ahead of its latest valuation and reflecting a net initial yield of 5.9%. AEW bought the asset in February 2019 for £7.32m.
Euroway Trading Estate in Bradford was sold for £6.45m, at a 17.3% premium to its latest valuation and a net initial yield of 6.8%. AEW bought the trading estate in 2016 for £4.95m.
AEW said reinvestment of the sales’ proceeds into comparatively higher yielding pipeline assets would be accretive to the company’s earnings.
Portfolio manager Laura Elkin said: “Both Euroway Trading Estate and Lockwood Court have performed well, delivering strong returns to AEWU shareholders since acquisition. The value creation through strong performance of the Yorkshire industrial markets, coupled with our successful asset management initiatives, presented an opportunity to crystallise capital growth and reinvest the sales proceeds into higher yielding opportunities. As such, we expect to make further purchase announcements in the coming months.”
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