AEW UK REIT PLC on Monday said that it has sold its industrial holding at Clarke Road for £2.8 million, reflecting a 6.3% net yield.

The London-based real estate investment trust for UK regional commercial property first bought the Milton Keynes unit in October 2015 for £1.5 million, reflecting an 8.3% net initial yield.

After completion of the sale, AEW UK REIT said it would have approximately £7.5 million to deploy on ‘an attractive pipeline’ of higher yielding assets which could be more accretive to the company’s earnings.

‘Clarke Road has performed well, delivering excellent returns to AEWU shareholders since original investment. The value created through completion of the new letting presented an opportunity to crystallise the asset’s strong performance, with the intention of reinvesting the proceeds into higher yielding opportunities and, as such, we expect to make further purchase announcements in the coming months,’ said Portfolio Manager Laura Elkin.

AEW UK REIT shares were trading 0.8% lower at 93.90 pence each in London on Monday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.