A mixed-use site in Reading town centre has been acquired by AEW UK’s Core Property Fund for £9 million.
Seven self-contained properties around the Station Road/Friar Street junction including the Revolution bar, the Harris Arcade, the Pitcher & Piano and the County House offices, totalling 66,047 sq ft of floorspace, are included.
In a statement, AEW said the established tenants benefit from a prominent city centre location and a large dedicated underground parking area. The statement added: “AEW has identified exciting opportunities to drive further value for the asset through active asset management.”
The deal is one of two acquisitions by the investor. AEW has also bought a freehold leisure site at Camperdown Leisure Park in Dundee for £4.55m. Tenant is Cineworld.
McDonalds, KFC, Nandos, Premier Inn, Weavers Mill and Dundee Ice Arena are other tenants on the park.
The two deals offer a blended net initial yield of 9.4 per cent.
Ed Long, director at AEW, said: “We are pleased to have acquired two more assets with very attractive fundamentals that aim to provide investors with high quality returns. Both assets are in strong core locations, which will provide our tenants with high footfall, and stable customer flow.”
As reported in Thames Tap, AEW acquired a key site between Broad Street and Friar Street last year and is currently going through the due diligence process to acquire the Broad Street Mall.
Image: Google.
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