(Alliance News) - AEW UK REIT PLC on Friday said that it is close to full deployment, after completing the purchase of a freehold, mixed-use asset in Bath city centre.

The London-based real estate investment trust for UK regional commercial property bought the Bath asset for GBP11.5 million, reflecting a net initial yield of 8.0%, and a capital value of GBP223 per square foot.

It now has around GBP3 million cash left available to invest.

The Bath property has a freehold island site, 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.

"We are pleased to have purchased this very well-located, mixed-use asset at a day one yield that will be accretive to the company's earnings and brings the REIT one step closer to full deployment, with just GBP3 million left to invest. Completion of the acquisition continues the strategic reinvestment of capital generated from recent sales into higher yielding assets in core urban locations," said Portfolio Manager Laura Elkin.

AEW UK REIT shares were trading 0.2% higher at 98.80 pence each in London on Friday morning.

By Holly Beveridge, Alliance News reporter

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