AEW snaps up Bath mixed-use property for £11.5m
AEW UK has completed the acquisition of an office-led mixed-use building in Bath for £11.5m.
The 51,632 sq ft asset sits adjacent to the SouthGate Shopping Centre and is close proximity to Bath Spa Train Station, Bath Cathedral, the Roman Baths, and Pulteney Bridge.
The site is currently multi-let to five tenants across office and retail accommodation, with the majority of the building let to four office tenants. A vacant retail unit on the ground floor is currently under offer to an “established local retailer”.
The real estate investment trust (REIT) said it expects market conditions in the area to remain favourable, given a low level of supply coupled with strong demand for well-specified and well-located accommodation.
Laura Elkin, portfolio manager of AEW UK, said, “We are pleased to have purchased this very well-located, mixed-use asset at a day one yield that will be accretive to the company’s earnings and brings the REIT one step closer to full deployment, with just £3m left to invest. Completion of the acquisition continues the strategic reinvestment of capital generated from recent sales into higher yielding assets in core urban locations.”
The purchase follows AEW’s £18.5m acquisition of Windsor Royal Station shopping centre, and its subsequent appointment of letting agents.