AEW UK REIT plc (“the Company”), which directly owns a diversified portfolio of regional UK commercial property assets, is pleased to announce the sale of the office accommodation at Pearl Assurance House, Nottingham for £3.65m.
The sale comprises the first to the ninth floors, a ground floor reception and car parking spaces, providing a total area of 41,262 sq ft, and reflecting a net initial yield (NIY) of 6.9%.
Pearl Assurance House was purchased by the Company in May 2016 for £8.15m. The Company will retain the ground floor accommodation in this busy city centre location, totalling 28,432 sq ft, let to national retail operators including Costa Coffee, Poundland and Lakeland. The retained element will provide the Company with an ongoing yield of 9.5% based on its component value of £5.26m.
Alex Short, Portfolio Manager, AEW UK REIT, commented: “Having completed numerous asset management initiatives within this property, including the completion of lease renewals across three floors and gaining consent for residential development across the upper floors, we believe that this is the right time to sell the office component of the asset having maximised its value in the short term. We are pleased to retain the ground floor, which provides an attractive yield for the Company in a major city centre location.”
