AEW UK REIT acquires assets in Portsmouth for £6.4m

AEW UK REIT, which directly owns a diversified portfolio of regional UK commercial property assets, has acquired 208-220 Commercial Road and 7-13 Crasswell Street in Portsmouth for a total sum of £6.4m, the company announced on Thursday.

The asset, which was already fully let to seven retail tenants including an office tenant with a WAULT of 4 years to expiry, would provide the company with a net initial yield of 9.6%, in a city that was set to receive £1bn of investment from public and private sector organisations over the next 20 years.

The property was located directly opposite The cascades, the main covered shopping centre anchored by Primark, H&M, Next as well as Marks and Spencer.

Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are pleased to have completed this latest acquisition which we expect to prove accretive to the Company's yield both on an initial and equivalent basis. When acquiring High Street retail assets we appraise a conservative scenario and therefore we were attracted by both the central location of these units and also the asset management and lease renewal opportunities that the asset provides. The addition of this property complements our existing portfolio and we are pleased to be investing again following the completion of our successful capital raise in October."