AEW UK REIT has acquired a 69,000 sq ft multi-let industrial building in Basildon, Essex, for £4.55m, reflecting a high net initial yield of 7.8% and a capital value of £66 per sq ft.
The warehouse is located within the established Cranes Farm Industrial area and strategically located adjacent to the A127, which provides quick vehicular access to Junction 29 of the M25.
AEW UK REIT said it was fully let to four tenants’, providing a WAULT of just under 4 years to lease breaks and 6 years to expiry.
It said the current lettings showed an average passing rent of £5.50 per sq ft which was significantly below the local market average and as such, the building presented an opportunity for near-term rental income uplift through asset management.
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