AEW Europe's UK arm has signed up its first Asian investor in the AEW UK Core Property Fund, having received £20 mln (€24 mln) of equity from a client of the Townsend Group.
AEW Europe's UK arm has signed up its first Asian investor in the AEW UK Core Property Fund, having received £20 mln (€24 mln) of equity from a client of the Townsend Group.
AEW UK’s acquisition team has used the equity to buy five properties totalling £15 mln while a further two properties are under offer at £3.5 mln.
The purchased portfolio comprises retail warehouses in Ashford and Wigan, industrial units in Leeds and Wakefield, and an office in Basingstoke. The properties have an average unexpired lease term of 5.7 years to break and 7.2 years to expiry.
Commenting on the deals, investment director Nick Winsley said: 'We are still finding better value in buying smaller lot sizes, with the recent deals having a combined income yield of 11% plus but more importantly a reversionary yield at the same level. We are buying in a space where private investors cannot get the debt required to fund a purchase.'
