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(Sharecast News) - AEW UK REIT announced the acquisition of Freemans Leisure Park in Leicester for 11.15m on Tuesday, marking the completion of its capital redeployment following the sale of Central Six Retail Park in Coventry.
The London-listed real estate investment trust said the 8.4-acre freehold site spans 108,771 square feet and was fully leased to national tenants including Odeon Cinemas, Mecca Bingo, Spirit Pub Company and Nando's.
It said the purchase reflected a net initial yield of 10.6% and a capital value of 103 per square foot, adding that the property offered a weighted average unexpired lease term of over eight years.
Located one mile south of Leicester city centre and near the University of Leicester, the site includes 582 car parking spaces and presented asset management opportunities through upcoming rent reviews, a potential EV charging letting, and consideration of alternative uses such as hotels and restaurants.
AEWU said the acquisition formed part of a wider pipeline of attractively priced investment opportunities it had identified in the current market.
"We are very pleased to have completed this acquisition which returns the company to a fully invested position," said portfolio manager Laura Elkin.
"Freemans Leisure Park offers an accretive income profile, as well as being defensively priced relative to surrounding alternative-use land values.
"We continue to actively monitor a pipeline of investments and remain optimistic about the attractive opportunities for investment in the current market."
At 1000 BST, shares in AEW UK REIT were up 0.97% at 104.2p.
Reporting by Josh White for Sharecast.com.
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