An investment company has completed a £11.5m deal for a property in the centre in Bath.
AEW 海角视频 REIT announced that it has completed the purchase of a freehold., mixed-use property in the South West city. The deal represents a net initial yield of 8% and a capital value of £223 per sq ft.
Following this acquisition, AEW is close to full deployment, with remaining cash available to invest of circa £3m.
The Bath-based property comprises a freehold island site totalling circa 0.4 acres and is located adjacent to the South Gate Shopping Centre. Bath Spa Train Station is a close walk from the property, with other attractions such as Bath Cathedral, the Roman Baths and Pulteney Bridge within a short distance.
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The 51,632 sq ft property is multi-let to five tenants across office and retail accommodation. The majority of the building is let to four office tenants.
AEW said it will consider "light refurbishment" to capitalise on the building's location and prominence. A vacant retail unit, fronting Philip Street and Ham Gardens, is currently under offer to an established local retailer.
AEW expects market conditions to remain favourable in this location given the low level of available and consented supply, coupled with strong demand for well-specified and well-located accommodation.
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Commenting on the purchase, Laura Elkin, portfolio manager of AEW 海角视频 REIT said: "We are pleased to have purchased this very well-located, mixed-use asset at a day one yield that will be accretive to the Company's earnings and brings the REIT one step closer to full deployment, with just £3m left to invest. Completion of the acquisition continues the strategic reinvestment of capital generated from recent sales into higher yielding assets in core urban locations."
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