AEW UK REIT has sold two industrial assets in Yorkshire for £16.1m.
Euroway Trading Estate in Bradford has been purchased for £6.45m after being acquired in November 2016 for £4.95m.
At acquisition, the property benefitted from a new eight-year term certain to Advanced Supply Chain (BFD) Ltd. In December 2019, the company completed a rent review which resulted in a 9.1% annual rental uplift.
Lockwood Court in Leeds was sold for £9.65m after being acquired in February 2019 for £7.32m. The property was acquired with the benefit of a new 10-year lease to L.W.S. (Yorkshire) Ltd, guaranteed by Harrogate Spring Water. In December 2019, AEWU secured a new 10-year lease to Harrogate Spring Water, following L.W.S. entering into liquidation.
Laura Elkin, portfolio manager, AEW UK REIT plc, said: “Both Euroway Trading Estate and Lockwood Court have performed well, delivering strong returns to AEWU shareholders since acquisition.
“The value creation through strong performance of the Yorkshire industrial markets, coupled with our successful asset management initiatives, presented an opportunity to crystallise capital growth and reinvest the sales proceeds into higher yielding opportunities. As such, we expect to make further purchase announcements in the coming months.”
