AEW disposes of 96,600 sq ft industrial

The real estate investment trust has sold Excel 95 at Deeside Industrial Estate for £4.75m, reflecting a capital value of £49 per sq ft.

AEW UK Reit first acquired the 96,600 sq ft industrial unit in 2017 for £4.31m. This price reflected a capital value of £45 per sq ft and a 7.9% net initial yield.

The company has sold the now-vacant warehouse to an owner-occupier. The £4.75m price tag reflects an 8% premium to the 31 March 2023 valuation.

Matthew Pochin, director of Legat Owen, acted on behalf of AEW in the sale.

Manufacturer Magellan Aerospace previously let Excel 95. The company vacated the facility last July, following a £250,000 dilapidations settlement payment.

Through AEW’s disposal of the unit, the business has avoided a speculative refurbishment project, which would cost approximately £1m.

Laura Elkin, portfolio manager at AEW UK REIT, commented: “This disposal is yet another example of our successful strategy in action.

“Rather than carry out a lengthy refurbishment programme, we have taken the decision to recycle capital into attractive assets from our pipeline, which are expected to deliver a more accretive performance in the future.”