Alternative Income REIT has agreed its first acquisition since appointing M7 Real Estate as its new investment adviser.
The investor has agreed to buy the Droitwich Spa Retail Park in Worcestershire for £4.75m, representing a net initial yield of 7.95%. The site is fully let to B&M and Pets at Home, with a weighted average unexpired lease term of seven years and a passing annual rent of £403,654.
The deal sees Alternative Income spending the proceeds of its £3.2m sale of the Wet ‘n’ Wild Water Park in North Shields, Tyne & Wear, on which it achieved a 6% exit yield.
Alternative Income replaced AEW with M7 as its investment adviser in May and has since attempted changes to its investment strategy.
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