Barnstaple Retail Park sold for £8.15m, 20% above its 2015 price
AEW UK REIT bought the 51,000 sq ft B&Q-anchored park for £6.79m in October 2015. It is selling now because the next lease event is not until 2029.
By Daily Oracles News Team1 min read
Barnstaple Retail Park has been sold by AEW UK REIT for £8.15 million, or £160 per sq ft. The price reflects a net initial yield of 7.5%.
The 51,000 sq ft retail warehouse park cost the trust £6.79 million, or £133 per sq ft, when it bought it in October 2015 at a net initial yield of 8.5%. The sale is £1.36 million, or 20%, above that price. AEW spent about £230,000 on landlord works while it owned the park.
When it was bought the park was fully let, with B&Q taking a 35,690 sq ft unit as anchor tenant. Since then the trust has let units to Wren Kitchens and Farmfoods and agreed a lease regear with B&Q. That deal fixed a 15-year term certain and raised the annual rent by £80,280, and it fed into a valuation increase of £900,000, or about 12%, in December 2025.
AEW said it was selling because there is little room to raise income from the park in the short to medium term. The next lease event is not due until 2029 and rents are broadly at market level. The proceeds will go into the trust's pipeline of higher-yielding purchases, which it expects to add to earnings once they complete.
AEW UK REIT invests mainly in smaller commercial properties, typically worth less than £15 million, across offices, retail, industrial and leisure. It pays an annualised dividend of 8p a share.
