Purchase of Property

RNS Number : 2999D

AEW UK REIT PLC

23 October 2015

 

23 October 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTIES FOR £3.37m

The Board of AEW UK REIT plc (the "Company") is pleased to announce that it has acquired its fifteenth property, Units 1001-1004, Sarus Court, Runcorn, for £3.37m. With this purchase, the Company has approximately £81m invested.

Sarus Court is located on the established Manor Park Industrial Estate to the west of Runcorn a short distance from the Mersey Gateway Project, providing a new 6 lane bridge over the River Mersey between the towns of Runcorn and Widnes linking the M56 to M62.  The project is due for completion in 2017. 

The site extends to 3.6 acres and accommodates four industrial warehouse buildings totaling 56,153 sq ft.  The property is fully let to two tenants on four leases providing an unexpired term of 5.2 years to expiry and 3.8 years to break.  The purchase price reflects a net initial yield of 8.0% and a reversionary yield of 7.9% and capital value of £60 per sq ft.

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 industrial asset for REIT and this estate stands out as being one of the best specified within the area.  As well as this acquisition, we are continuing to make good progress with transactions in line with our deployment timetable and expect to be able to make further announcements very shortly."

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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