12 April 2017
Essex
Reporter: Theo Andrew
AEW UK bags Essex industrial unit
AEW UK REIT has acquired a multi-let industrial building in Basildon, Essex in an off-market deal, for £4.55 million.

The 69,000-square foot warehouse, located in the Cranes Farm industrial area, reflects a net initial yield of 7.8 percent and a capital value of £66 per square foot.

Fully let to four tenants, it has a weighted average unexpired lease term of under four years to lease breaks and six years to expiry.

According to AEW, current rents for the property sit below the local market average at £5.50 per square foot, presenting an opportunity for the rental income uplift for the company.

The property is located next to the A127, allowing easy access to Junction 29 of the M25.

Alex Short, portfolio manager at AEW UK Investment Management LLP, said: “Basildon has seen strong commercial rental performance over the past 18 months, driven by a supply-demand imbalance, and as such, prime and secondary rents in the town now sit at £8.50 per square foot and £6.75 per square foot, respectively.”

He added: “Furthermore, we believe that the acquisition pricing is well supported by the asset’s underlying vacant possession value, highlighting the strength of the occupational market in this location.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Dolphin Living makes splash with Retail Charity Bond
23 June 2017 | London | Reporter: Theo Andrew
The money raised will be invested in Dolphin Living’s London portfolio, which includes 196 homes currently under development
New York apartment block bagged for $57 million
23 June 2017 | New York | Reporter: Theo Andrew
The 53,000-square foot 12-storey property consists of 54 one-, two- and three-bedroom newly-refurbished units
AEW Germany fund hits €118 million on first close
22 June 2017 | Berlin | Reporter: Theo Andrew
Focusing on Germany’s seven main cities, the fund will also strategically target other established office locations around the country
Wanda HK acquires Nine Elms Square for £470 million
21 June 2017 | London | Reporter: Theo Andrew
Vinci St. Modwen, the 50/50 joint venture between St. Mowden Properties and Vinci expects to complete the sale of the 10-acre site later this summer
Majority stake in Barcelona Hilton bagged by AXA IM - Real Assets
21 June 2017 | Barcelona | Reporter: Theo Andrew
Purchased from Iberdrola Inmobiliaria on behalf of AXA Insurance Companies, the 4-star hotel is currently operated by Hilton Hotels on a long-term lease
UK self-storage market expands for third year running
21 June 2017 | London | Reporter: Theo Andrew
The UK now accounts for 47 percent of Europe’s self-storage space, according to the UK Annual Industry Report
Hermes dispatches East London portfolio to Great Portland Estates
20 June 2017 | London | Reporter: Theo Andrew
Spanning 1.1 acres, the properties are located between Aldgate and the new Whitechapel Crossrail Station