AEW makes £6.5m Preston warehouse purchase
The real estate investment trust has acquired a 59,000 sq ft retail unit off Cuerden Way in Bamber Bridge with a capital value of £110/sq ft.
The seller of the site was not disclosed. However, according to HM Land Registry, the site was last owned by Salya & Sons, who acquired it as part of a £10m deal in 2007.
AEW UK Reit’s recent purchase of the site for around £6.5m reflects a net initial yield of 9.5%. This yield could increase to 10.7% in 2027 following a rent review.
Neighbouring Aldi and Sainsbury’s, the five-acre site is currently single-let to Matalan Retail.
With more than nine years left on its lease, the retailer will continue to occupy the warehouse.
Laura Elkin, Portfolio Manager of AEW UK REIT said: “Our due diligence has shown that Matalan trades well from the location, giving us confidence in its continued occupation, and in the stability of the income stream.
“As we look to return the portfolio to full investment, we continue to analyse an interesting pipeline of potential acquisitions, and expect to make further purchase announcements in the coming months.”
Avison Young was the estate agent for the deal.
