Purchase of Property

RNS Number : 9776F

AEW UK REIT PLC

17 November 2015

 

17 November 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES INDUSTRIAL INVESTMENTS

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of two neighbouring industrial warehouses totalling 221,145 sq ft on Langthwaite Business Park, South Kirkby, let to Ardagh Glass Limited with a WAULT of approximately 1 year to break and 2.5 years to expiry. The properties have been bought for £5.8m (net of acquisition costs) reflecting a net initial yield of 11%, reversionary yield of 12% and a capital value of £26 per sq ft.

The properties are situated on the well-established Langthwaite Business Park, South Kirby, West Yorkshire.

With this purchase, the Company has approximately £88m invested, including £9.75m in AEW UK's Core Property Fund, and 17 properties.

The Company is a real estate investment trust ("REIT"), which aims to deliver an attractive total return to shareholders from investing predominantly in a portfolio of smaller commercial properties in 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.

Commenting on the deal, Alex Short, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired these industrial warehouses, which are well located in an area where there is a dearth of available accommodation and we feel positive that the pricing of this asset is well supported by its underlying vacant possession value."

For further information, please contact:

AEW UK Investment Management LLP Dana Eisner/Nicki Gladstone	020 7016 4800
Capita Company Secretarial Services Limited Marco Murray	020 7954 9792
Dexion Capital plc Katie Standley	020 7832 0900

 

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