AEW UK REIT has bought another freehold block in Bath.
The £11.5m deal reflects an attractive net initial yield of 8% for the 52,000 sq ft building, which is let to four office tenants, with retail on the ground floor.
The island site extends to a total of 0.4 acres and is immediately adjacent to the South Gate Shopping Centre, which forms part of the city’s core retail provision.
The REIT said the rents were low, at £22 per sq ft, and would improve with refurbishment and renewals.
Last year, AEW UK REIT paid just over £13m for Northgate House in Bath.
Following the recent deal, the REIT is close to full deployment, with just £3m of cash remaining.
AEW was advised by Lewis Ellis and the seller, Columbia Threadneedle, by Knight Frank.
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