AEW UK REIT has acquired Central Six Retail Park in Coventry for £16.4 mln (€19 mln), reflecting a net initial yield of 11% and an anticipated reversionary yield of circa 12.5%.
AEW UK said that the 11.91 acre (48,000 m2) site presented opportunities to add value through active asset management by renewing current tenancies and securing new tenants on the park.
The deal follows the sales of two of its industrial holdings in South Kirkby and Basingstoke at prices 87% and 73% above their purchase prices, respectively.
Alex Short, portfolio manager, AEW UK REIT, commented: 'We are pleased to have acquired Central Six Retail Park in Coventry, which has been purchased for a price that will deliver an excellent initial yield and contribute immediately to shareholder returns.
'The park offers further opportunity to manage the assets proactively to enhance NAV over the longer term. At present the retail warehouse sector is providing some interesting opportunities, often underpinned by alternative use value, and occupied by tenants that have shown resilience during the pandemic.'
Situated less than a mile from Coventry city centre and adjacent to Coventry Railway Station and the Friargate Regeneration area, the retail park comprises 148,765 ft2 (13,820 m2) of purpose-built retail space with parking for 635 cars.
The site cover is just 27%. Units are let to household name retailers including TK Maxx, Next, Boots, Sports Direct, Burger King and Poundland.
The tenants at Central Six Retail Park have proven to be resilient during the pandemic, with rent collection rates generally being strong.
