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AEW UK REIT PLC - real estate investment trust for UK regional commercial property - Completes sale of its industrial holding at Deeside Industrial Estate for £4.8 million, reflecting a capital value of £49 per square foot for the 96,597 square feet industrial unit known as Excel 95. Was previously acquired in July 2017 for £4.3 million, or around £45 per square foot, reflecting a 7.9% net initial yield for the completed sale on Tuesday. Says the property was previously 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% premium to the March 31 valuation. By disposing of the asset, the company says it has also avoided a speculative refurbishment project costing approximately £1 million. Following completion of the sale, AEW UK REIT will have approximately £9.6 million to deploy on an attractive pipeline of higher yielding assets, which it says will be more accretive to the company’s earnings. Portfolio Manager Laura Elkin says: ‘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.’ Current stock price: 97.50 pence, down 1.6% 12-month change: down 19% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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