AEW UK REIT has bought a nightclub in Cardiff for £3.6m.
The purchase of the Pryzm nightclub reflects a net initial yield of 8%.
The property is close to the Principality Stadium and St David’s Shopping Centre, with Cardiff University and the University of Wales about 300m from the site. The REIT described the club as “prominent” in the city’s leisure and late-night district.
Alex Short, portfolio manager, said: “[The site] has been purchased for a price that will deliver a strong initial yield which will be immediately accretive to shareholder returns, and the tenant is up to date with its rental commitments despite the disruption to trade caused by the pandemic.”
“The property is well located and demand for leisure assets remains robust with a limited number of large capacity venues available.”
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