Coventry retail warehousing park sold for £26m
AEW UK REIT has completed the part sale of a retail warehousing park in Coventry in a deal worth £26.25m. The units are occupied by a range of national brands including Next and Boots.
The company has disposed of units 1-11 of Central Six Retail Park, reflecting a net initial yield of 7.49 per cent.
Following the completion of three new lettings to Aldi Stores, Iceland Foods and Whitecross Dental Care, which added £668,000 of annual rental income, the property is now fully let. This is coupled with lease renewals and regears to Next Group plc, Boots UK Ltd and TJX UK (TK Maxx).
The sale price will be paid in two tranches; the first instalment of £25.9m was paid on sale completion on 13 December 2024. The second instalment, amounting to £350,000 and currently held in escrow, will be paid on the completion of a new lease of Unit 10 to Superdrug Stores Plc, where an agreement has already exchanged.
Henry Butt of AEW UK REIT said: "As a result of our active asset management strategy, we have sold part of this asset at a very healthy premium to the purchase price of the whole, thereby delivering excellent returns to the company's shareholders.
"The value created by our successful asset management presents an opportunity to crystallise capital growth and reinvest the sale proceeds into higher yielding opportunities in the market.
"A significant part of the proceeds from the sale are already under offer and, as such, we expect to make purchase announcements in the coming months."
The company will retain the remaining part of the retail park (Units 12, A(1), A(2) and B), known as the 'triangle site'.
