Leisure complex bought for £4.4m

The AEW UK Real Return Fund has completed the purchase of a 23,282sq ft leisure investment in the affluent town of Altrincham, Greater Manchester for £4.4m which equates to a net initial yield of 7.5%.

The scheme is anchored by a six-screen cinema, operated by Vue, with two adjoining restaurant units let to The Restaurant Group (UK) Ltd (trading as Franky and Benny’s) and Chiquito.

The acquisition is the fund’s 30th transaction and takes its total size to £65.1m NAV (net asset value).

The fund currently has a healthy commitment queue and is actively seeking opportunities to grow the portfolio.

The vehicle was set up in 2016, to provide an inflation-linked cash flow that aligns the real benefits of property with the liabilities of pension savers and long term investors with a 4% net real total return objective and a 5% gross income return target.

AEW was represented by King Street Commercial and the vendor was represented by Lewis and Partners.

Ian Mason, portfolio manager at UK Real Return Fund, said: “This acquisition provides an attractive income profile which is accretive to the current portfolio yield. In addition to the strong income return, the investment benefits from being located in a prosperous catchment which provides an opportunity to reposition the offer through various asset management opportunities.”

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