Units at Coventry retail park sold for £26m
AEW UK REIT plc (“AEWU”) has completed the sale of units 1-11 at Central Six Retail Park in Coventry for £26.25m to an undisclosed buyer.
Excluding the ‘triangle site’ (Units 12 and others, which AEWU will retain), the sale is expected to deliver an internal return of over 16%.
The payment will be made in two parts: £25.9m on completion (13 December 2024) and £350,000 once a new lease with Superdrug is finalised.
The buyer will also pay £500,000 if AEWU secures a tenant for electric vehicle charging within 18 months.
After new leases with Aldi, Iceland and Whitecross Dental, the property is fully let, boosting its annual rental income by £668,000.
The sale price is 60% higher than the £16.41m paid for the whole property in November 2021 and 6.7% above its June 2024 valuation.
Henry Butt of AEW UK REIT said: “As a result of our active asset management strategy, we have sold part of this asset at a very healthy premium to the purchase price of the whole, thereby delivering excellent returns to the Company’s shareholders.
“The value created by our successful asset management presents an opportunity to crystallise capital growth and reinvest the sale proceeds into higher-yielding opportunities in the market. A significant part of the proceeds from the sale are already under offer and, as such, we expect to make purchase announcements in the coming months.”
