Purchase of Property

RNS Number : 0682Z

AEW UK REIT PLC

15 September 2015

 

15 September 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTY FOR £5.3m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of a further acquisition for £5.3m (net of acquisition costs).

1-15 Fargate & 18-36 Chapel Walk, Sheffield provides a total of 40,128sq ft with 8 retail units spread over basement, ground and first floors. Two of the retail units front onto the pedestrianised Fargate Street with six fronting the adjoining retail arcade of Chapel Walk. Tenants include Paperchase, H Samuel and Claire's Accessories with the lettings providing a WAULT of 3.8 years to breaks and 5.3 years to expiry.  Upper floors from first to fifth are currently vacant with development potential for a number of uses including student accommodation, subject to planning. The purchase price reflects a net initial yield of 8.25%, inclusive of rental guarantees, and a reversionary yield of 9.1%, following the sale of the upper parts.

With this purchase, the Company has approximately £65m invested, 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 deal, Alex Short, the Company's Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired this latest asset due to its busy location within Sheffield's prime retail pitch and also the ability to add value through obtaining planning consent for the development of the upper floors.  With this acquisition we are still on target to meet our acquisition timetable and 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 Katie Standley	020 7832 0900

 

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