AEW UK REIT Makes Strategic Play with £11.15m Acquisition of Leicester’s Freemans Leisure Park
AEW UK REIT has completed the acquisition of Freemans Leisure Park in Leicester for £11.15 million, marking a strategic milestone in its capital redeployment programme following the recent sale of Central Six Retail Park in Coventry. The transaction positions the trust back into a fully invested state, with a focus on long-term income generation and asset value growth.
The 8.4-acre freehold site comprises 108,771 square feet of lettable space and is fully occupied by established national tenants, including Odeon Cinemas, Mecca Bingo, Spirit Pub Company, and Nando’s. The purchase reflects a net initial yield of 10.6% and a capital value of £103 per square foot, underscoring the REIT’s disciplined acquisition approach in today’s pricing environment.
Strategically located just one mile south of Leicester city centre and in close proximity to the University of Leicester, the property benefits from high footfall and excellent accessibility. The site includes 582 car parking spaces and offers medium- to long-term asset management opportunities, including rental uplifts, the potential introduction of EV charging infrastructure, and the exploration of alternative use cases such as hotel or restaurant development.
Laura Elkin, Portfolio Manager at AEW UK, described the acquisition as an “accretive income opportunity” and highlighted its favourable pricing relative to surrounding land values. The asset’s weighted average unexpired lease term (WAULT) of over eight years provides strong income visibility and downside protection.
This transaction forms part of a broader pipeline of attractively priced assets that AEW UK is actively monitoring. The company remains focused on sourcing income-generating investments with value-add potential, even amid a more cautious market backdrop.
Following the announcement, AEW UK REIT shares rose by 0.97% to 104.2p, reflecting investor confidence in the trust’s disciplined strategy and its ability to identify and secure high-quality opportunities in a dynamic commercial property market.
