Purchase of Property

RNS Number : 7400C

AEW UK REIT PLC

19 October 2015

 

19 October 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTIES FOR £3.06m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of a portfolio comprising of 3 industrial warehouses totalling 65,500 sq ft.  Moorside Road, Swinton; Wagon Road, Mossley and Clarke Road, Milton Keynes, all trading as Nationwide Crash Repair Centres, have been bought for £3.06m (net of acquisition costs) reflecting a net initial yield of 8.3% and a capital value of £47 per sq ft.

The properties in Swinton and Mossley are both located within 10 miles of Manchester, close to junctions 2 and 23 of the M60 respectively, whilst Clarke Road forms part of the Mount Farm Industrial Estate close to junction 13 of the M1. The leases, expiring in August 2023, provide a WAULT of just under 8 years and produce a total rental income of £269,000 pa which is considered to be rack rented.  The income is guaranteed by Nationwide Accident Repair Services Ltd.

With these purchases, the Company has approximately £77m invested, including £9.75m in AEW UK's Core Property Fund, and 14 properties.

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, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired these industrial warehouses, which are well located and are backed by a strong covenant."

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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