AEW UK REIT, an investment company, has successfully concluded an £11.5 million acquisition of a versatile office property located in the heart of Bath. This significant move bolsters the company’s strategic real estate portfolio.
Acquisition Details
- Price: £11.5 million
- Property Type: Mixed-use office
- Net Initial Yield: 8%
- Capital Value: £223 per sq ft
AEW UK REIT’s latest acquisition has brought the company closer to fully deploying its capital, leaving approximately £3 million available for further investments.
Prime Location
The newly acquired property sits on a freehold island site spanning approximately 0.4 acres. It is conveniently situated adjacent to the South Gate Shopping Centre, with easy access to Bath Spa Train Station and numerous attractions, including Bath Cathedral, the Roman Baths, and Pulteney Bridge, all within a short distance.
Property Overview
- Total Area: 51,632 sq ft
- Tenants: Five tenants across office and retail spaces
- Majority Leased: Four office tenants
- Retail Opportunity: A vacant retail unit facing Philip Street and Ham Gardens is currently under offer to a local retailer.
Future Plans
AEW is considering “light refurbishment” to leverage the property’s prime location and visibility. Market conditions are expected to remain favorable due to limited supply and robust demand for well-specified, well-located spaces in the area.
AEW’s Perspective
Laura Elkin, Portfolio Manager of AEW UK REIT, expressed her satisfaction with the acquisition, stating, “With only £3 million left to invest, we are happy to have purchased this ideally situated mixed-use asset at a day one yield that will boost the Company’s earnings and get the REIT closer to full deployment. After the transaction is complete, money from recent sales will continue to be strategically reinvested in higher-yielding assets in central metropolitan areas.”
