AEWU completes sale of two Leeds-based industrial assets for £16.1m

The prices achieved for the individual assets are £6,450,000 for Euroway Trading Estate, reflecting a 6.8 per cent NIY, and £9,650,000 for Lockwood Court, reflecting a 5.9 per cent NIY.

Laura Elkin, portfolio manager at AEW UK REIT plc, said: "Both Euroway Trading Estate and Lockwood Court have performed well, delivering strong returns to AEWU shareholders since acquisition.

“The value creation through strong performance of the Yorkshire industrial markets, coupled with our successful asset management initiatives, presented an opportunity to crystallise capital growth and reinvest the sales proceeds into higher yielding opportunities.

"As such, we expect to make further purchase announcements in the coming months."

Euroway Trading Estate was initially acquired by the firm in November 2016 for £4,950,000, reflecting an 8.1 per cent NIY.

At acquisition, the property benefitted from a new eight-year term certain to Advanced Supply Chain Ltd.

In December 2019, the Company completed a rent review which resulted in a 9.1 per cent annual rental uplift.

Lockwood Court was acquired in February 2019 for £7,320,000, reflecting a 7.7 per cent NIY. The property was acquired with the benefit of a new 10-year lease to L.W.S. (Yorkshire) Ltd, guaranteed by Harrogate Spring Water.

In December 2019, AEWU secured a new 10-year lease to Harrogate Spring Water, following L.W.S. entering into liquidation.

For Euroway Trading Estate and Lockwood Court respectively, their sales prices exceeded the most recent valuation prior to going under offer by 17.3 per cent and 9.7 per cent, as well as their acquisition prices by 30.3 per cent and 31.8 per cent.

Reinvestment of the sales proceeds into comparatively higher yielding pipeline assets will be accretive to the Company's earnings.