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AEW UK has acquired a pair of industrial warehouses for £2.6m

London-headquartered investment company AEW UK REIT has announced it has acquired two industrial warehouses for a combined £2.6m.

The firm has snapped up the assets in Basildon, Essen and Runcorn in Cheshire with funds gained from the previous £1.5m sale of a property on Equinox Business Park in Salisbury in February.

In Basildon, AEW, which owns a portfolio of 31 regional commercial properties, has agreed to acquire a 33,000 sq ft single-let industrial building on Pipps Hill Industrial Estate for £2m, which the investment firm said will be let to Merson Signs Ltd on a new ten year lease.

Its new Runcorn asset is based at Sarus Court Industrial Estate, where AEW already owns five of the six units on the park, for somewhere in the region of £600k and is let to Dimension Data until 2020.

Commenting on the acquisitions, Alex Short, the Company’s Portfolio Manager at AEW UK Investment Management LLP, said: “Basildon is a very strong industrial location that has seen significant rental growth over the past 18 months.

“The unbroken 10 year lease will improve the Company’s overall income profile; furthermore we believe that the acquisition pricing is well supported by the asset’s underlying vacant possession value, limiting any downside risk.

“The Runcorn purchase offers significant rental upside, whilst bringing the whole estate under the Company’s ownership, which will add value from an estate management perspective. The off-market acquisition demonstrates our continued origination capabilities across the UK.”

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