AEW UK acquires £10m Hertfordshire high street asset
AEW UK REIT has acquired a freehold high street asset in Hitchin, Hertfordshire for £10m, reflecting a net initial yield of 8.31% and a capital value of £213 per sq ft.
The property, located at 13/13A, 114-119, 121-123 Bancroft and 3-4 Portmill Lane, extends to 46,905 sq ft of space across 12 retail units, a standalone office building, and car parking and service yards.
The retail element of the property is fully let to a line-up of 12 tenants, with major occupiers including Marks & Spencer, Next, Vodafone, The White Company, and Holland & Barrett.
The vacant office element, which is located to the rear, provides various asset management options in the short-to-medium term, including new lettings or residential conversion.
Hitchin is a market town with an affluent catchment, served by rail connections to both London and Cambridge.
The acquisition comes as part of AEW UK’s ongoing redeployment of sale proceeds from the recent disposal of Central Six Retail Park in Coventry. In considering the re-deployment of the remaining proceeds from the sale, AEW UK said it has identified an attractive pipeline of investments available for purchase in the current market and is considering available growth opportunities.
Laura Elkin, portfolio manager of AEW UK, said: “We are delighted to have purchased this well-located asset at a day one yield that will enhance the company’s earnings. Completing this acquisition marks a significant milestone in our strategy to reinvest capital generated from the recent successful 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.”