AEW UK Long Lease REIT (“the Company”) is pleased to announce that it has purchased two industrial buildings on the Eurolink Industrial Estate, Sittingbourne for £3.9m, reflecting a net initial yield of 6.3%.
The property comprises two warehouse buildings totalling 43,636 sq ft let to Doré Metals Services Southern Ltd, which has had its headquarters on the site since 2007. The lease provides a new 15 year term expiring in September 2033 and has 5 yearly RPI linked rent reviews.
The site is located on the established Eurolink Industrial Estate in central Sittingbourne, with excellent access to the M2 and M20 and one mile from Sittingbourne station. Other occupiers in the vicinity include Everest and B+M Steel. The surrounding area comprises a mix of residential, industrial and commercial uses.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: “Demand for industrial property in the South East makes this a great addition to our diverse portfolio. Given this strong demand, we think that the property provides good potential for rental growth over the long term, both from its inflation linked uplifts and in terms of open market levels as well.”
The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, with an ambition to grow in line with UK inflation thereafter.
