Coventry retail park sold in £16.4m deal
AEW UK REIT has bought the 11.91 acre Central Six Retail Park in Coventry in a £16.4m deal.
The deal takes AEWU close to full investment, having recently completed the sales of two of its industrial holdings in South Kirkby and Basingstoke at prices 87% and 73% above their purchase prices, respectively.
The site is next to Coventry Railway Station and the Friargate Regeneration area. The retail park provides 148,765 sq ft of purpose-built retail space with parking for 635 cars. Units are let to household name retailers including TK Maxx, Next, Boots, Sports Direct, Burger King and Poundland.
Alex Short, portfolio manager, AEW UK REIT, said: “We are pleased to have acquired Central Six Retail Park in Coventry, which has been purchased for a price that will deliver an excellent initial yield and contribute immediately to shareholder returns.
“The park offers further opportunity to manage the assets proactively to enhance NAV over the longer term. At present the retail warehouse sector is providing some interesting opportunities, often underpinned by alternative use value, and occupied by tenants that have shown resilience during the pandemic. We are pleased to add this asset to the portfolio and will continue to target acquisitions where we believe valuations offer the opportunity to deliver both strong income and capital performance.
“The company continues to judge each asset on its own specific merits, rather than being entirely sector driven in its purchasing strategy.”
