AEW UK REIT sells Barnstaple Retail Park for GBP8.2 million

AEW UK REIT PLC on Monday said it has sold Barnstaple Retail Park in Devon for £8.2 million, representing a 20% premium to its original purchase price.

The London-based real estate investment trust said the sale of the 51,000 square foot retail park reflects a net initial yield of 7.5%, with a price of £160 per square foot.

AEW UK REIT acquired the property in October 2015 for £6.8 million, reflecting a net initial yield of 8.5%. The disposal represents a £1.4 million gain on the purchase price, following approximately £230,000 of capital expenditure during its ownership.

The company said asset management initiatives, including new lettings to Wren Kitchens and Farmfoods and a lease restructuring with anchor tenant B&Q, helped increase rental income and strengthen the property's tenant profile.

The B&Q agreement secured a 15-year lease term and increased annual rent by £80,280, contributing to a £900,000 uplift in the property's valuation in December 2025.

AEW UK REIT said it plans to reinvest the proceeds in higher-yielding investment opportunities, with acquisitions expected to enhance earnings.

Portfolio Manager Laura Elkin said: "With the business plan substantially complete and limited scope for further income growth in the near term, the sale crystallises the value created and enables us to redeploy capital into investments that we expect to enhance company earnings. We expect to announce acquisitions in the coming months."

Shares in AEW UK REIT were 2.0% higher at 102.80 pence in London on Monday afternoon.

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