AEW UK REIT plc announced that it has completed the purchase of a freehold, mixed-use asset in Bath city centre for £11,500,000, reflecting an attractive net initial yield of 8.0% and a capital value of £223 per sq ft. Following this acquisition, the Company is close to full deployment, with remaining cash available to invest of circa £3 million. The property comprises a rare freehold island site totaling circa 0.4 acres and is located immediately adjacent to the South Gate Shopping Centre which forms part of the city's core retail provision.

Bath Spa Train Station is less than a five minute walk from the property, with other key tourist attractions such as Bath Cathedral, the Roman Baths and Pulteney Bridge within a short distance. The 51,632 sq ft asset is multi-let to five tenants across office and retail accommodation. The majority of the building is let to four office tenants at a low average passing rent of circa £22 per sq ft.

Income levels are expected to improve via rent reviews in the short-term and through lease renewals and re-lettings over the medium-term. Light refurbishment may also be considered in order to fully capitalise on the building's prime location and prominence. A vacant retail unit, fronting Philip Street and Ham Gardens, is currently under offer to an established local retailer.

The company expects market conditions to remain favourable in this location given the low level of available and consented supply, coupled with strong demand for well-specified and well-located accommodation.