Asset Sale

AEW UK REIT plc (AEWU) AEW UK REIT plc: Asset Sale 18-Dec-2020 / 07:00 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. 18 December 2020 AEW UK REIT plc (the "Company") Asset Sale Announcement The Company is pleased to announce that it has unconditionally exchanged contracts for the sale of Sandford House, Homer Road, Solihull for the price of £10.5 million. The sale price crystallises significant profit by exceeding both the valuation level immediately prior to the sale by over 9% and the acquisition price by 94%.  The asset was acquired in August 2015 for £5.4 million and has been fully let to the Secretary of State for Communities and Local Government since this time producing a net income yield against the purchase price of 9.6%.  The Company had invested no further capital in the asset during its hold period. A new 15-year lease agreement was signed with the tenant in July 2020, which increased the rental income received from the asset by 30%.  The lease also provides for five yearly open market rent reviews and a tenant break option at year 10. The tenant intends to carry out a major refurbishment of the property over the coming weeks. The sale is due to complete on 1 February 2021 and the Company will receive income from the asset until this date.  Subsequent to this, the Investment Manager intends to reinvest sale proceeds on behalf of the Company and has identified an attractive pipeline of suitable assets. Commenting on the sale, Alex Short and Laura Elkin, Portfolio Managers of AEW UK REIT said, "The completion of the sale of this property will deliver to the Company an IRR in excess of 20% which, particularly at the current time, highlights the defensive nature of the Company's strategy.  Seeking mispriced assets has been a feature of the strategy since IPO and this example demonstrates well how shorter income assets in prime locations can be used to create value for shareholders over the long run." For further information, please contact: AEW UK Alex Short [e-mail] [phone] Laura Elkin [e-mail] [phone] Nicki Gladstone [e-mail] [phone] Company Secretary [e-mail] Link Company Matters Limited [phone] TB Cardew [e-mail] Ed Orlebar [phone] Tania Wild [phone] Lucas Bramwell [phone] Liberum Capital Gillian Martin / Owen Matthews [phone] Notes to Editors About AEW UK REIT AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than £15 million), on shorter occupational leases in strong commercial locations across the United Kingdom. The Company was listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 12 May 2015, raising £100.5m. Since IPO it has raised a further £58m. The Company is currently invested in office, retail, industrial and leisure assets, with a focus on active asset management, repositioning the properties and improving the quality of the income stream.  AEWU is currently paying an annualised dividend of 8p per share.  www.aewukreit.com  About AEW UK Investment Management LLP AEW UK Investment Management LLP employs a well-resourced team comprising 26 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €68.9bn of assets under management as at 30 September 2020. AEW has over 700 employees, with its main offices located in Boston, London, Paris and Hong Kong and offers a wide range of real estate investment products including comingled funds, separate accounts and securities mandates across the full spectrum of investment strategies. The Investment Manager is a 50:50 joint venture between the principals of the Investment Manager and AEW. In May 2019, AEW UK Investment Management LLP was awarded Property Manager of the Year at the Pensions and Investment Provider Awards. www.aewuk.co.uk LEI: 21380073LDXHV2LP5K50

ISIN:	GB00BWD24154
Category Code:	MSCM
TIDM:	AEWU
LEI Code:	21380073LDXHV2LP5K50
OAM Categories:	3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.:	89911
EQS News ID:	1156153

End of Announcement	EQS News Service