Purchase of Property

RNS Number : 9608I

AEW UK REIT PLC

14 December 2015

 

14 December 2015

AEW UK REIT plc

AEW UK REIT PLC ANNOUNCES THREE FURTHER ACQUISITIONS

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of a further three property assets.

The first comprises a prominent 49,764 sq ft town centre leisure investment in Southend-on-Sea, let to Odeon Cinemas Limited with a WAULT of approximately 7 years to expiry. The property was acquired for £5.7m (net of acquisition costs) reflecting a net initial yield of 8.4%, a reversionary yield of 9.1% and a capital value of £115 per sq ft.

The property is situated in the town centre adjacent to Victoria Plaza Shopping Centre and comprises an 8 screen cinema.

The Company has also acquired Cleaver House, Runcorn; a single let industrial unit forming part of the Sarus Court development that was acquired by the Company in October.  The acquisition price of £910,000 (net of acquisition costs) reflects a net initial yield of 7.9%, a reversionary yield of 8.3% and a capital value of £57 per sq ft.  The property is fully let to Performance Products Limited with expiry in 2021 and a tenant break option in 2018.

In addition, the Company has acquired Oak Park, a 188,515 sq ft industrial complex in Droitwich, let to Egbert H. Taylor & Co Limited (trading as Taylor Bins) with a WAULT of approximately 7 years to expiry. The property has been bought for £5.625m (net of acquisition costs) reflecting a net initial yield of 10.4%, a reversionary yield of 10.4% and a capital value of £30 per sq ft.

With these purchases, the Company has approximately £100m invested in 20 properties and including £9.75m in AEW UK's Core Property Fund.

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 deals, Alex Short, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "With these acquisitions we have now invested the full IPO proceeds and have begun  to draw down under the Company's loan facility. We are pleased to have acquired this leisure investment which is well located in the heart of Southend-on-Sea let to a strong covenant whilst the industrial investment provides the Company with 7 years of income at an attractive yield from a good covenant."

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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