AEW UK acquires two wholesale warehouses for £8 million

Added by Love Business East Midlands | 12 December 2021

UPDATED: 14 December 2021

AEW UK Real Return Fund (AEW) has acquired two wholesale warehouses, located in Barnsley and Leicester, for a combined total of £8 million at a blended yield of 7%.

The sites are fully let to Booker Limited, the UK’s largest food wholesale operator. In 2017 Booker was acquired by Tesco for £3.7bn at which time Booker was generating revenues of more than £5bn per annum.  Booker has proven to be a jewel in Tesco’s crown since the acquisition, making a significant contribution to group profits and providing the group with stronger distribution capabilities.

The two properties are strategically positioned in Barnsley and Leicester and provide excellent regional accessibility, of considerable benefit to the tenant and their 1.5 million customers.

The 86,947 sq ft warehouse situated in Barnsley, a major commercial and administrative centre, has excellent motorway access providing its tenant and customers with access to the wider region.

The second 55,634 sq ft warehouse is located three miles from Leicester city centre. Leicester is the largest city in the East Midlands and provides good access to the East and West Midlands sectors of the market as well as national reach with 80% of England’s population in within a two-hour HGV drive time.

Both properties are freehold sites and benefit from large customer carparks with extensive service yards for deliveries.

Edward Long, Director, AEW UK Real Return Fund commented:

“We are pleased to have acquired the two assets that deliver a combined yield of 7%, while also increasing our exposure to the UK industrial sector. In the  competitive industrial market, the properties have been acquired below replacement cost and are let off low affordable rents providing an attractive level of high income and potential for growth which is accretive to our portfolio.”

The agent representing AEW was David Kos of Lewis Ellis.

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