AEW acquires £11m Leicester leisure park
AEW UK REIT has completed the acquisition of Freemans Leisure Park in Leicester for £11,150,000, reflecting a net initial yield of 10.6%.
The property – located on an 8.4-acre freehold site one mile south of the city centre – spans 108,771 sq ft across five units with service yards and 582 car parking spaces.
The asset is fully let to national tenants including Odeon Cinemas, Mecca Bingo, Spirit Pub Company, and Nandos, with a weighted average unexpired lease term of over eight years.
Freemans Leisure Park provides a number of asset management opportunities, including rental growth prospects through upcoming reviews, the possibility of an EV charging letting, and the appraisal of alternative uses – such as a hotel or restaurant – on land which is yet to be developed.
The acquisition completes AEW UK’s redeployment of sale proceeds from its disposal of Central Six Retail Park in Coventry in December 2024.
Laura Elkin, portfolio manager of AEW UK REIT, said: “We are very pleased to have completed this acquisition which returns the Company to a fully invested position. 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.”
Montagu Evans advised AEW UK REIT. KLM Real Estate advised the vendor.