AEW UK REIT has purchased Freemans Leisure Park in the centre of Leicester for £11.15m. The purchase price reflects a net initial yield of 10.6% and a capital value of £103/sq ft.
The 108,771 sq ft leisure park occupies a prominent 8.4-acre site on an arterial route one mile south of Leicester city centre.
The property is fully let to a mix of national tenants including Odeon Cinemas, Mecca Bingo, Spirit Pub Company and Nando’s, and provides a weighted average unexpired lease term to expiry of greater than eight years.
AEW UK REIT said the leisure park presents various short‐to‐medium term asset management opportunities, including: rental growth prospects through upcoming rent reviews; the possibility of an EV charging letting; and the delivery of alternative uses, such as hotel and restaurant space, on areas of the site that have not already been developed.
Laura Elkin, portfolio manager of AEW UK REIT, said: “We are very pleased to have completed this acquisition which returns the company to a fully invested position. Freemans Leisure Park offers an accretive income profile, as well as being defensively priced relative to surrounding alternative‐use land values. We continue to actively monitor a pipeline of investments and remain optimistic about the attractive opportunities for investment in the current market.”
