Purchase of Property

RNS Number : 5213S

AEW UK REIT PLC

08 July 2015

 

8 July 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTIES FOR £14.65m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of two further acquisitions for total consideration of £14.65m.

Sandford House, located in Solihull town centre, provides 34,418sq ft of offices with parking for 130 vehicles.  It was acquired for £5.4m. The property is fully let to a government department with a tenant break option in just under 2 years. The purchase price reflects a net initial yield of 10.9% and a capital value of £157 per sq ft.

69-75 Above Bar Street, Southampton is a prime retail parade of 3 units extending to 27,247sq ft.  It was acquired for £9.25m. 40 per cent of the income is secured against Barclays Bank with other units occupied by Blacks and Waterstones, providing an average weighted unexpired lease term of 6.2 years. The acquisition reflects a net initial yield of 8.75%.

The purchases are the second and third for the Company which now has c. £33m invested, including £9.75m in the AEW UK 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, the Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have now completed three acquisitions for the Company.  Purchases are progressing well and in line with our timetable as set out to investors prior to the REIT launch.  We currently have under offer, or are working to agree terms on, a range of similar deals and therefore expect to be able to make further announcements over the coming weeks."

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 Ravi Anand/Katie Standley	020 7832 0900

 

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