Purchase of Property

RNS Number : 5089O

AEW UK REIT PLC

09 February 2016

 

09 February 2016

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES INDUSTRIAL PORTFOLIO

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of a portfolio of three single-let industrial warehouses located in Basingstoke, Rotherham and St Helen's comprising approximately 232,523 sq ft. The properties are fully let to Wella (UK) Holdings Ltd, Sapa Components UK Ltd and Kverneland Group UK Ltd respectively. The portfolio provides a WAULT of c.5 years to break and 6 years to expiry. The portfolio was acquired for £9.0m (net of acquisition costs) reflecting a net initial yield of 9.0%, reversionary yield of 9.6% and a capital value of £39 per sq ft overall.

With this purchase, the Company has just over £120m invested in 25 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 these assets, which are well located and provide a medium term income stream from strong covenants 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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