AEWU acquires Shrewsbury retail park for GBP8.35m
AEW UK REIT has acquired the 5.65 acre Arrow Point Retail Park in Shrewsbury for a purchase price of GBP8.35 million.
The established retail park is located on a busy commercial estate and is fully let. The purchase price reflects a low capital value of GBP88 per square foot (GBP1.48 million per acre).
The estate provides a net initial yield of 8.7 per cent, with low passing rents compared to competing locations, while being underpinned by industrial and trade rents.
Arrow Point Retail Park comprises a modern purpose-built retail park constructed in 2007, arranged across nine units in two terraces with 176 car parking spaces to the front. The retail park is prominently located within the main retail warehouse provision of Shrewsbury, approximately 2.5 miles north east of the town centre, tenants include British Heart Foundation, Poundstretcher and Charlie’s Stores and neighbours retail occupiers including Matalan and B&M Home Store.
Alex Short, Portfolio Manager, AEW UK REIT, says: "We are pleased to have acquired the Arrow Point Retail Park. This is an excellent fit for our portfolio and an excellent new contributor to AEWU’s income stream, putting to use the profit from the sale of the Solihull office asset in February this year. Retail remains a small percentage of the portfolio’s composition and, while we continue to take a cautious approach to this sector, the tenant profile of the site is strong and we are confident that we can manage the assets to drive value for shareholders over the medium to long-term.”
Following completion of the above purchase, the Company holds cash of cGBP8 million and has cGBP15 million of its loan facility available to draw (up to the maximum 35 per cent Loan to NAV at drawdown). The Company's portfolio exposure is broken down by sector as follows: