UK real estate investment trust AEW UK REIT (AEWU) has added two retail assets to its portfolio.
The London-listed firm said it has agreed to buy Northgate House in Bath city centre for £13m (€15m) and has also completed the purchase of a freehold retail asset in the London Borough of Bromley for £5.3m.
Northgate House, located in Bath between Union Street, comprises 48,805sqft of retail accommodation and 18,215sqft of offices. The Bromley asset, located on the western side of the pedestrianised Bromley High Street, provides 54,215sqft of retail space.
Laura Elkin, portfolio manager of AEW UK REIT 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. The purchase prices of both assets reflect low capital values which we believe will provide excellent value to our shareholders over the long term.
“We continue to analyse a very interesting pipeline of potential acquisitions for AEWU’s strategy and, following full investment of the remaining capital available for deployment, the company’s earnings are expected to return to full cover of its dividend.”
AEWU said following these two acquisitions, the company will have £7m to deploy on other new purchases while retaining sufficient cash for working capital purposes.
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