In a significant move that underscores its commitment to prime real estate, AEW has announced the acquisition of Windsor Royal Station shops through its Urban Real Estate Fund (UREF). The deal, worth a staggering £18.5 million, encompasses a shopping area of 74,200 sq ft, strategically located next to the Windsor Yards centre, which AEW had previously acquired in 2021.

The acquisition, reflecting a net income yield of 9.6%, is not just about expanding AEW’s real estate portfolio but also about tapping into the potential of Windsor’s thriving market. Situated opposite Windsor Castle and forming part of the Windsor & Eton Central station, the site is in a prime location. With Windsor being a major tourist attraction, the consistent high footfall offers AEW a golden opportunity to benefit from robust retailer performance.

The area is also witnessing a surge in its night-time economy. Notable occupiers like Five Guys and All Bar One have already expanded their operational hours to cater to this emerging market.

Charles Royle, the portfolio manager of UREF, expressed his satisfaction with the acquisition, stating, “Windsor Royal is our second asset in Windsor after Windsor Yards in 2021. We are excited about the transformation of Windsor town centre and our collaboration with local stakeholders and the Royal Borough of Windsor and Maidenhead.”

The acquisition marks the completion of the fund’s acquisition phase, setting the stage for AEW’s future endeavours in the UK’s real estate market.