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AEW UK REIT PLC on Friday said it has bought an asset in Glasgow, following the sale of its Eastpoint Business Park in Oxford for £29.0 million.
AEW UK is a real estate investment trust for UK regional commercial property.
The company said that the £29.0 million sale of its Eastpoint Business Park in Oxford was complete on Monday, whilst its property at Moorside Road in Swinton was sold on Tuesday for £1.7 million.
AEW said it has used these disposals to buy an asset located in Glasgow for £2.6 million, reflecting a low capital value of £99 per square foot and providing a net initial yield of 7.4%.
The asset, located two and a half miles north-west of Glasgow city centre, comprises of a leisure and retail warehousing unit let to JD Sports Gym Ltd, a gym operator and subsidiary of JD Sports Fashion PLC. It also contains a vacant plot of land which may be suitable for redevelopment over the medium term, subject to planning, AEW said.
The lease provides an unexpired term of 10.6 years, benefiting from five-yearly upward-only reviews, the company added.
AEW expects the purchase to be complete next week.
Laura Elkin, portfolio manager of AEW, said: ‘The asset, located in a prominent position within a major UK city, has the potential for asset management to add further value over the longer-term.
‘We expect to make further purchase announcements in this respect in due course,’ Elkin added.
Shares in AEW UK were up 0.8% to 115.32 pence each in London on Friday morning.
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