AEW UK REIT Acquires High-Yielding Leisure Park
Why we think this is good
The acquisition of Freemans Leisure Park represents a positive strategic move for AEW UK REIT. The property offers an attractive net initial yield of 10.6% and is fully let to well-known national tenants, providing a defensively-priced and accretive income stream for the company. The transaction also completes the redeployment of sale proceeds from a previous disposal, indicating efficient capital management. While some financial details are unquantified and the timeline for benefits is unclear, the overall opportunity appears favorable given the property's location, tenant profile, and asset management potential.
Key Points
- AEW UK REIT has acquired Freemans Leisure Park in Leicester for £11,150,000
- The property offers an attractive net initial yield of 10.6% and is fully let to national tenants
- The acquisition completes the redeployment of sale proceeds from a previous disposal
- The company sees attractive investment opportunities in the current market
Summary
AEW UK REIT has acquired Freemans Leisure Park, an 8.4-acre freehold site in Leicester, for £11,150,000. The purchase price reflects an attractive net initial yield of 10.6% and a capital value of £103 per sq. ft. The property is fully let to a well-known group of national tenants, providing a weighted average unexpired lease term to expiry of greater than eight years. The acquisition completes the company's redeployment of sale proceeds from a previous disposal, and the company remains optimistic about the attractive investment opportunities available in the current market.