AEW UK Core Property Fund (AEW) has acquired two assets located in Reading and Dundee for a combined total of £13.55 million, reflecting a blended net initial yield of 9.4%.
The Reading asset, acquired for £9 million, is a freehold, unbroken retail, leisure and office block with prominent frontages on Friar Street, Station Road and County House & Harris Arcade. The mixed-use site comprises seven self-contained properties and provides 66,047 sq ft of floor space, with its established tenants benefitting from a prominent city centre location and a large dedicated underground parking area. AEW has identified exciting opportunities to drive further value for the asset through active asset management.
The Dundee asset, acquired for £4.55 million, is a freehold leisure site located in Camperdown Leisure Park, spanning 53,733 sq ft of floor space let to Cineworld Cinemas Ltd. Other tenants in the leisure park, include McDonalds, KFC, Nandos, Premier Inn, Weavers Mill and Dundee Ice Arena. Camperdown Leisure Park is positioned adjacent to the A90 Kingsway, the main arterial route to the north of Dundee city centre.
Ed Long, Director at AEW, said: “We are pleased to have acquired two more assets with very attractive fundamentals that aim to provide investors with high quality returns. Both assets are in strong core locations, which will provide our tenants with high footfall, and stable customer flow.”