Westlands Distribution Park in Weston Super Mare has been acquired in a £5.4m deal.
The established 323,437 sq ft estate is let to 15 tenants including North Somerset District Council. It is located three miles from the M5 and 20 miles south of Bristol city centre.
New owner AEW UK REIT said the purchase price reflected a low capital value of £175,000 per acre which provided potential for future capital value growth based upon nearby comparable land transactions.
The estate provides a net initial yield of 6.4 per cent which is expected to increase to at least 7.4 per cent within the medium term.
Alex Short and Laura Elkin, portfolio managers at AEW UK REIT, said: “Following the very profitable sale of our largest asset in Corby during May, we have undertaken cautious analysis of the investment market and our pipeline in the intervening months when looking to replace Corby and its income stream within the portfolio.
“This latest acquisition is an excellent fit for the portfolio as it offers significant potential for future value accretion in addition to its very low level of passing rent which provides strong prospects for future rental growth.”