AEW UK Core Property Fund has announced the acquisition of Four Ashes Industrial Estate on Station Road, Wolverhampton for £12.8 million, reflecting an initial yield (NIY) of 8.0%.
The 355,979 sq ft freehold industrial estate is multi-let, with the range of unit sizes allowing for occupier diversity and reduced income risk.
Four Ashes Industrial Estate is situated on Station Road, providing direct access to Junction 12 of the M6 Motorway, therefore being very well placed for tenants to serve customers in Birmingham, Wolverhampton and the North West. The surrounding area comprises a number of large logistics warehouses, the most recent of which was constructed in 2020, 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.”
Agents acting for AEW were Cushman and Wakefield whilst Savills represented the vendor.