AEW UK core property fund has acquired a freehold industrial property in Wolverhampton for £12.8 mln (€14.8 mln), with a net initial yield of 8.0%.
Located on Station Road, the 33,071 m2 Four Ashes Industrial Estate is multi-let, with the range of unit sizes allowing for occupier diversity and reduced income risk.
The property provides direct access to Junction 12 of the M6 Motorway, enabling tenants to serve customers in Birmingham, Wolverhampton and the North West.
The surrounding area comprises a number of large logistics warehouses, with further development under construction.
Michael Shears, executive director at AEW, said: ‘Given that take up and demand in Wolverhampton’s industrial market currently outstrips supply, we believe the acquisition of Four Ashes provides a great opportunity for the Fund and its investors. In addition to the site’s asset management potential, we believe the attractive fundamentals and diverse tenant base aligns with the strategy of the Fund, as well as reducing income risk.’
Cushman and Wakefield acted on behalf of AEW, while Savills represented the vendor.
AEW is one of the world’s largest real estate asset managers, with €38.7 bn of real estate assets in Europe managed on behalf of a number of funds and separate accounts as of 31 March 2022.
