AEW UK REIT has bought a car park in York city centre for just over £10m.
The deal reflects a net initial yield of 9.3%.
As well as a 297-space car park let to NCP, which provides 75% of the income, the 99,769 sq ft asset is let to four other tenants in ground-floor shops and a first-floor office on George Hudson Street.
NCP has a further nine years remaining on its lease, which has an RPI-linked rent increase due in 2027. This will result in a forecast reversionary yield in excess of 10%.
The site totals 0.8 acres and is located inside the city wall, in York’s Micklegate Quarter.
Following the deal the REIT has £15m of cash available to deploy.
Portfolio manager Laura Elkin said: “We continue to analyse an interesting pipeline of potential acquisitions and expect to make further purchase announcements in due course, which will bring us closer to our short-term target of full deployment of capital.”
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