AEW UK REIT secures 3 new tenants at Queen Square
Press release
5 August 2016
AEW UK REIT plc secures three new tenants at 40 Queen Square, Bristol
-Lettings bring occupancy level to 80% following major refurbishment programme-
August 5 2016 - AEW UK REIT plc ("AEWU" or "the Company") announces that it has secured three new lettings at 40 Queen Square, its office building in Bristol city centre, totalling 38,301 sq ft. Since AEWU acquired the asset last year, it has implemented a significant refurbishment programme, with these new lettings consistent with AEWU's strategy of maintaining high-yielding income streams while driving rental growth and adding value through active asset management.
40 Queen Square is located in the centre of Bristol and totals 38,301 sq ft, over four floors of Grade-A office space. AEWU has completed a 10 year lease with commercial law firm Beale & Company for 3,850 sq ft, a 10 year lease with the planning consultancy firm Turley for 3,100 sq ft, and a 10 year lease with commercial building consultants Malcom Hollis for 3,500 sq ft, at a total rental of £230,000 per annum. The building is now 80% pre-let, with three suites remaining; one is currently under offer, measuring 1,500 sq ft, while the remaining two total 2,000 sq ft and 5,500 sq ft.
Queen Square is one of the most sought after business addresses in Bristol, benefiting from excellent transport links - Bristol Temple Meads train station is less than 1km away - and surrounded by a range of local amenities, with the central retail and leisure district around Broadmead, Quakers Friars and Cabot Circus just a ten minute walk away.
The property was acquired in December 2015 and AEWU has since implemented an extensive refurbishment programme, including an upgrade of the communal areas and the addition of new bike racks and showers. The newly let spaces have been finished to a high specification and include new suspended ceilings, new carpets, LED lighting with PIR detection and lighting control modules, and VRV heating and cooling systems, which have improved the energy efficiency of the building.
Alex Short, Portfolio Manager, AEW UK REIT, commented: "Securing these new tenants is testament to the expertise and skills of our asset management team and also demonstrates the buoyancy of the high-quality office market in secondary UK cities. The increasing demand for both new and refurbished Grade-A office space, as Bristol becomes a prime location choice away from London for financial services and TMT businesses, coupled with an acute shortage of supply, is resulting in a rental price uplift which AEWU is well positioned to benefit from.
"The outlook for commercial property returns in UK regional cities remains positive for the foreseeable future and by continuing to focus on income producing assets, we are confident of delivering attractive returns to shareholders."
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than £10 million), on shorter occupational leases, in strong commercial locations across the United Kingdom.
Since its IPO in May 2015, AEWU has built a £116.4 million (as at 30 April 2016) diversified portfolio of 25 assets and is currently invested in office, retail, industrial and leisure assets, with a focus on active asset management, repositioning the properties and improving the quality of the income stream. Whilst occupational demand in strategic locations remains, securing tenants on shorter leases allows AEWU to crystallise value through rent reviews and lease re‐gears.
AEWU is currently paying a covered dividend of 8p per share p.a. and targets a total annual return, over the medium term, in excess of 12% on the IPO issue price, net of all fees.
Real estate investment specialist AEW UK Investment Management LLP is a joint venture between the management team, which together has an average of 25 years of real estate experience, and AEW Europe, which has €48.1 billion of real estate assets under management. AEW UK Investment Management LLP has a strong and expert asset management team, with a proven record of identifying and delivering value from real estate assets across all sectors.
Contact |
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Laura Elkin/Nicki Gladstone AEW UK REIT 020 7016 4800 nicky.gladstone-ext@aeweurope.com
Richard Sunderland, Claire Turvey, Richard Gotla FTI Consulting 020 3727 1000 aewuk@fticonsulting.com
www.aewukreit.com
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This information is provided by RNS
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