AEW UK REIT plc has unconditionally exchanged on the acquisition of 2 Geddington Road, Corby for £12.4m. Completion of the acquisition is due to take place on the 19 February 2018.
The asset provides an attractive net initial yield of 10% from GEFCO UK Ltd, a wholly owned subsidiary of GEFCO SA, a global provider of logistics services to manufacturers, and the property has 3.75 years to expiry.
The property comprises a secure fenced site along with a modern industrial property extending to 52,000 sq ft and is used by the tenant for the storage and inspection of vehicles.
A mix of commercial and residential properties surround the area, including the Eurohub logistics park, a 250-acre development site currently being prepared by Frogmore and Mulberry Developments.
Alex Short, Portfolio Manager, AEW UK REIT, commented: “We are pleased to announce this latest acquisition which provides an attractive level of income for the Company. In the longer term we believe that the site provides good potential for us to add value due to the adjoining uses being both logistics warehousing and residential. In addition, Corby Borough Council have proposed to double the area’s population by 2030.”