Purchase of Property

RNS Number : 4321M

AEW UK REIT PLC

20 January 2016

 

 20 January 2016

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES MIDLANDS MULTI-LET INDUSTRIAL

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of a multi let industrial warehouse located in Brockhurst Crescent, Walsall, West Midlands, an established commercial area located two miles from Junction 9 of M6.  Comprising approximately 142,106 sq ft, the property is fully let to Tata Steel UK and Micheldever Tyre Services providing a WAULT of c 6.4 years.  It was acquired for £3.85m (net of acquisition costs) reflecting a net initial yield of 9.9%, reversionary yield of 8.5% and a capital value of £28 per sq ft.

With this purchase, the Company has just over £111m invested in 22 properties, 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. The Company raised an additional £17.2m pursuant to a placing which closed on 9 December 2015.

Commenting on the deal, Alex Short, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired this multi-let industrial warehouse, which is well located and provides a medium term income stream to the company at an attractive return."

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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