AEW UK REIT has completed the sale of its industrial holding at Deeside Industrial Estate for £4.75m, reflecting a capital value of £49 per sq ft.
The 96,597 sq ft industrial unit, known as Excel 95, was acquired in July 2017 for £4.31m (£45 per sq ft), reflecting a 7.9 per cent net initial yield.
The property was let to Magellan Aerospace, until they vacated in July 2022, paying a £250,000 dilapidations settlement.
The company has disposed of the vacant asset to an owner-occupier, with the price reflecting a circa 8 per cent premium to the 31 March 2023 valuation. By disposing of the asset, the business has also avoided a speculative refurbishment project costing approximately £1m.
Following completion of the sale, the company will have approximately £9.6m to deploy on an attractive pipeline of higher yielding assets, which will be more accretive to the company’s earnings.
Laura Elkin, portfolio manager, AEW UK REIT plc, said: “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. We expect to make further announcements in this respect in the coming months.”
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