Purchase of Property

RNS Number : 3647X

AEW UK REIT PLC

27 August 2015

 

27 August 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTY FOR £3.5m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of a further acquisition for £2.18m (net of acquisition costs).

Vantage Point, 23 Mark Road, Hemel Hempstead comprises a two storey office building of 18,407 sq ft located within the established Maylands Business Park located within of the M1 Motorway and 10 miles south of Luton Airport.  The property is fully let to two tenants, providing a weighted average unexpired lease term of 5 years to break and 9.4 years to expiry.  The purchase price reflects a net initial yield of 8.4% and reversionary yield of 8.4%.

With this purchase, the Company has approximately £60m 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 another South East office asset for the Company. We see this sector as attractive due to the increasing levels of occupational demand.  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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