AEW and Mountgrange raise EUR 23m from asset sales

A joint venture vehicle managed by AEW Europe/Tristan Capital Partners and Mountgrange Investment Management has sold two assets for a total of £20.3 mln (EUR 23 mln) from a portfolio acquired in September 2008.

These two disposals, together with several other sales, mean that the managers have grossed £45 mln from the portfolio since acquisition, taking advantage of the current demand for quality retail and office assets.

The first, a retail warehouse located in an established retail destination in Winchester Road, Southampton, has been sold to Ignis UK Property Fund for £11.7 mln, reflecting a net initial yield of 6.25%. The property is a modern 4,400-m² retail warehouse with a garden centre. Other occupiers in the immediate vicinity include Halfords, Currys, and Pets at Home. The warehouse is let to Wickes Building Supplies on an FRI lease expiring in September 2027 with a rent topped up to £772,330 per annum in advance of the fixed uplift in July 2012.

The joint venture managers were advised on this disposal by Wilkinson Williams. Ignis Property Fund was advised by Savills.

The second property to be sold is Jacobs House at Cheadle Royal in Cheadle, Cheshire, to Prudential Property Investment Management for £8.6 mln, reflecting a net initial yield of 7.34%. Set within the North West's premier business park, the freehold office investment totals 3,351 m² of grade A space over three floors. The property is currently entirely let to AWG Property who have a break in the lease in nine and a half years' time and pay an annual rent of £667,536.

The joint venture managers were advised on this disposal by international real estate advisor Savills. Prudential Property Investment Management was advised by CBRE.