£4.7m deal to acquire retail park

AEW UK REIT plc has acquired the 6.04 acre Railway Station Retail Park, in Dewsbury, for £4.7m.

The park is fully let with an average passing rent of £8.28 per sq ft, which the investment manager believes provides strong potential for rental growth.

Tenants include Sports Direct, Mecca Bingo, Fieldrose Ltd, trading as KFC, and the Danish furniture retailer, Jysk.

The park is on the edge of the town centre and neighbouring occupiers include Sainsburys, Aldi, Matalan, Pets at Home and Iceland as well as a council operated library and sports facility.

Laura Elkin, portfolio manager of AEW UK REIT, said: “This latest acquisition supports our view that the current market continues to provide investment opportunities that deliver dividend accretive income streams while also providing future potential for capital growth.

“Our work undertaken on the tenants of the park has shown that they trade well from the location and we expect an attractive level of income to be sustained.”