AEW UK has made its first acquisitions for its Real Return Fund – two leisure schemes in Borehamwood and Coventry together with a portfolio of pubs, restaurants and convenience stores in the Midlands and the South East.
The recently launched fund spent a total of £33.2m on the assets.
The Point in Borehamwood comprises 57,000 sq ft and is let to Pure Gym, Gala Leisure and Reel Cinemas. It was bought for a net initial yield of 7.2%.
Cross Point in Coventry comprises 44,000 sq ft and is let to Tenpin and Pizza Hut. It was acquired for a net initial yield of 8.2%.
The portfolio comprises 17 freehold pubs, restaurants and five convenience stores which provide a combined rental income of £1.33m pa. These are let to a independent and corporate operators including Spirit Pub Company, Stonegate Pub Company, Tesco, Co-op and Brunning & Price.
Ian Mason, portfolio manager, AEW UK Real Return Fund, said: “We are delighted to have acquired our first properties in the alternative sectors and hope to be able to make further announcements soon. So far we have a created a well-diversified portfolio of 24 properties, with 70% of the income linked to inflation, a WAULT of over 16 years and a yield of over 6.5%.”
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