12 April 2017
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
BMO adds nine assets to UK portfolio
23 October 2017 | London | Reporter: Theo Andrew
The properties are spread across the office (35.9 percent), industrial (34.5 percent), retail warehousing (22.5 percent) and retail sectors (7.1 percent), reflecting an initial yield of 4.8 percent
Kennedy Wilson Holdings completes $8 billion merger with European arm
20 October 2017 | California | Reporter: Theo Andrew
The $1.98 billion (£1.5 billion) deal equated to an offer of $15.49 (£11.74) per KWE share, a 20 percent premium on the $12.91 (£9.79) per share closing price on 21 April
Aviva acquires Bristol redevelopment
20 October 2017 | Bristol | Reporter: Becky Butcher
Aviva Investors has purchased the first phase of a redevelopment business park in Bristol for £30 million
Coyote names Rob Bould as non-executive director
19 October 2017 | London | Reporter: Theo Andrew
Rob Bould, who has 40 years of real estate experience, will help grow the data platform, which will track, manage and report the performance of real estate assets in real-time
Hammerson expands flagship Parisian shopping centre
19 October 2017 | Paris | Reporter: Theo Andrew
The 11,000-square metre property adjoins its Les Trois Fontaines centre, the firm’s recently refurbished flagship asset in Paris
SELF II reaches €500 million on third close
19 October 2017 | Paris | Reporter: Theo Andrew
The pan-European debt fund achieved the equity through institutional investors from France, Germany and Italy
Encore+ adds Dutch office for €50 million
18 October 2017 | Eindhoven | Reporter: Theo Andrew
The the pan-European open ended core-plus fund is co-managed by Aviva Investors and LaSalle IM, as fund manager and asset and transition manager, respectively