AEW UK REIT has bought a brace of properties in Bath and Bromley for a total of £18.3m.
The REIT has unconditionally exchanged on Northgate House, a 67,020 sq ft mixed-use block in the centre of Bath, for £13m, reflecting a low capital value of £194 per sq ft and a net initial yield of 8.5%.
The block has TK Maxx anchoring its 48,000 sq ft retail element, which is let to 11 tenants, and 18,215 sq ft of offices, let to Regis brand Spaces until 2032.
The asset, close to Pulteney Bridge, is held on a lease from Bath and North East Somerset Council for an unexpired term of 178 years at a peppercorn rent.
Completion of the deal is expected later this week.
AEW has also completed the £5.3m purchase of a freehold retail asset in Bromley, south London, reflecting a low capital value of £101 per sq ft and a net initial yield of 8.7%.
The REIT now has around £7m left to deploy
Laura Elkin, the REIT’s portfolio manager, said: “Over recent weeks, we have taken time to carefully consider where best value can be found and we are delighted to have acquired these high-yielding retail assets both located in strong locations.”
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