Purchase of Property

RNS Number : 0827W

AEW UK REIT PLC

14 August 2015

 

14 August 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTY FOR £12.2m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of a further acquisition for £12.2m (including an amount for rent top up; net of acquisition costs).

225 Bath Street, Glasgow is currently fully let to six tenants and provides 87,827 sq ft of offices over seven floors with parking for 32 cars. The purchase price reflects a net initial yield of 10.0% and a capital value of £139 per sq ft. The property provides a total passing rent of £1,296,307 pa (including the rental top up).

The investment provides an average weighted unexpired lease term of 2.3 years to breaks and 4.5 years to expiry. 

The ERV for the property is just over £1,315,000 which equates to a reversionary yield of 10.2%.

The purchase is the fifth for the Company which now has c. £52m 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.

Alex Short, the Portfolio Manager at AEW UK Investment Management LLP said, "We are pleased to have completed on another acquisition for the REIT, in line with our timetable as set out to investors prior to the REIT launch.  The REIT is currently under offer, or close to being under offer on, a range of similar deals and consequently 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

 

END

 

 

ACQDZLBFEVFXBBV