Purchase of Property

RNS Number : 4509C

AEW UK REIT PLC

16 October 2015

 

16 October 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTIES FOR £8.79m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of two further acquisitions for £8.79m (in each case, net of acquisition costs).

Barnstaple Retail Park was acquired for £6.79m reflecting a net initial yield and reversionary yield of 8.5%. It comprises a fully let retail warehouse scheme, extending to 50,950 sq ft. The Park is anchored by a 35,690 sq ft B&Q and includes a 9,605 sq ft unit let to Sports Direct and a 5,717 sq ft unit let to Poundland. The leases provide a WAULT of 7.3 years to break and 8.6 years to expiry, producing a total rental income of £610,680 pa.

Carrs Coatings, Eagle Road, Redditch was acquired for £2.0m reflecting a net initial yield of 9.5% and reversionary yield of 7.5%. Carrs Coatings is located on the established North Moons Moat Industrial Estate to the east of Redditch, a short distance from Junction 3 of the M42.  The site extends to circa 1.7 acres and accommodates an industrial warehouse building of 37,833 sq ft.  The property is single let to Carrs Coatings Ltd providing an unexpired term of 13 years with annual fixed rental uplifts in line with RPI. 

With these purchases, the Company has approximately £74m invested, including £9.75m in AEW UK's Core Property Fund, and eleven 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 deals, Alex Short, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired Barnstaple Retail Park, which is a well located scheme with a strong tenant line up. We are also pleased to have acquired another industrial asset for the Company in Carrs Coatings and North Moons Moat comprises a very well established estate.  We also feel positive that the pricing of this asset is well supported by its underlying vacant possession value.  We continue to make good progress with our acquisition timetable and, based upon a very interesting pipeline of similar deals, we 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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