Purchase of Property

RNS Number : 8557W

AEW UK REIT PLC

24 August 2015

 

24 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 £3.5m (net of acquisition costs).

710 Brightside Lane is located to the north-east of Sheffield, with good access from both the city centre and the M1 and within one mile of the Meadowhall Shopping Centre.  The site extends to circa 5.75 acres and accommodates an industrial warehouse building of 125,938 sq ft along with extensive yard and parking areas.  The property is single let to ROM Group Limited, a subsidiary of the Celsa Group, for a period of 15 years from April 2015.  The lease provides for a tenant break option in just under 10 years' time.  The purchase price reflects a net initial yield of 9.5% and reversionary yield of 9.5%.

The purchase is the seventh for the Company which now has c. £57.6m invested, including £9.75m in the AEW UK 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, Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired the first industrial asset for REIT.  We regard this asset as particularly attractive due to the length of income and its situation in a busy mixed use location.  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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