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AEW acquires UK waterpark and seeks more investment properties

wet n wild has been in a deal with AEW UK Long Lease REIT

AEW UK Long Lease REIT have acquired a hotel and retail unit on Princes Street, Swindon and the leasehold interest in the Wet ‘n’ Wild Water Park in Royal Quays, Newcastle-upon-Tyne.

The hotel and retail unit on Princes Street, Swindon was acquired for £6.3m. It is a 35,000 sq ft property. It comprises a Travelodge hotel and Salvation Army centre, provides a weighted average unexpired lease term of 23 years, with a net initial yield of 5.5%.

95% if the income received from the asset comes from the lease to Travelodge.

This is the Company’s first acquisition since listing in June 2017.

The Wet‘n’Wild water park at Royal Quays has also been snapped up by AEW in a £2.9m deal.

That property comprises a purpose built indoor water park totalling 37,131 sq ft. It is let to Serco Leisure Operating Ltd, a wholly owned subsidiary of Serco Plc, for an unexpired term of 22 years.  The acquisition reflects a net initial yield of 6.1%.

This acquisition is expected to reach completion within the next few weeks – once assignment of the head lease has been approved.

Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company, Alex Short, said: “We are delighted to have secured our first acquisition and exchanged on a second asset. Both properties reflect our commitment to investing in sectors that are often underrepresented in institutional portfolios.”

“The property pipeline is looking positive and we will continue to pursue attractive opportunities that are aligned with our rigorous investment approach.”

Image courtesy of Wet ‘n’ Wild, Royal Quays

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Michael Mander

Michael Mander

I am a journalist from Essex, England. I enjoy travelling, and love exploring attractions around the world. I graduated from Lancaster University in 2018. Twitter @michael_mander.

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