AEW UK REIT has bought a high street retail asset in Hitchin, Hertfordshire, for £10m.
The purchase price reflects a net initial yield of 8.3% and a capital value of £213 per sq ft.
The deal comprises the facilities at 13/13A, 114-119, 121-123 Bancroft and 3-4 Portmill Lane. The 12 fully let shops and a vacant office block measure 46,905 sq ft. Tenants include Marks & Spencer, Next, Vodafone, The White Company and Holland & Barrett.
AEW said it would explore short to medium-term options for the office block, including new lettings or residential conversion.
Laura Elkin, portfolio manager at AEW UK REIT said: “Completing this acquisition marks a milestone in our strategy to reinvest capital generated from the recent sale of our retail park in Coventry into higher-yielding and value-add assets.
“We continue to actively monitor a pipeline of attractive potential investments, and believe the company is well positioned to focus on the growth of the portfolio should the right earnings accretive opportunities arise.”
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