AEW UK REIT has bought two mixed-use schemes in Nottingham and Blackpool for a total of £13.2m from U+I.
The deals represent the final investment for the company’s equity capital, which is geared to 20% of gross asset value, in line with its investment strategy.
The 71,260 sq ft building on Wheeler Gate in Nottingham city centre is let to six retail tenants and nine office tenants including Poundland, Costa and Lakeland, providing a WAULT of around 4.5 years to break and 5.2 years to expiry.
The property was bought for £8.2m – a net initial yield of 9% and a reversionary yield of 9.9%.
The 100,079 sq ft Blackpool property, located on The Promenade adjacent to the Blackpool Tower, was bought for £5.1m – a net initial yield of 9.5% with a reversionary yield of 8.4%.
It includes three retail units at ground floor and basement let to Poundland, Sports Direct and JD Wetherspoons, providing a WAULT of around 7.5 years to break and 10 years to expiry.
The upper floors of the property are currently vacant and have been de-listed for rating purposes but AEW said it was exploring alternative uses for the space.
With these purchases, the company has invested just over £123m in 27 properties, including £9.8m in AEW UK’s Core Property Fund.
Fawcett Mead acted for U+I; AEW was represented by Prime Retail.
• To send feedback e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
