Commercial property portfolio value falls by nearly £30m

28th February 2023 | Jack Oliver

A portfolio of 37 commercial property assets fell in net asset value by nearly £27 million in the final three months of 2022.

A financial update released today by AEW UK REIT revealed a fall in value from £193.08m in September 2022 to £166.24m by the end of the year.

This was a fall of 10.82% in like-for-like valuation for the quarter.

The portfolio consists of 11 retail units, including retail parks in Barnstaple, Coventry and Shrewsbury, as well as four leisure units, with a JD Gym in Glasgow, a Dagenham leisure park, an Odeon in Southend, and a Pryzm nightclub in Cardiff.

Highlights for the group in the quarter included the acquisition of three units, for a total valuation of around £34.6m.

Laura Elkin, portfolio manager, AEW UK REIT, said: “Following interest rate rises and the unfolding UK macro-economic backdrop, real estate valuations across all market sectors, in particular at the prime end of the industrial and warehousing sector, fell significantly during the quarter. The value of the company’s assets has not been immune from this trend”.

However, she added that “volatile markets can present significant opportunities for an actively managed value strategy”.

“During the quarter, vendor requirements for sale led to valuations moving materially in favour of purchasers and this has allowed AEW to access quality locations at more favourable pricing.”


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