AEW UK Long Lease REIT invests £17.2m
22 December 2017
AEW UK Long Lease REIT acquires Huddersfield car showroom and Manchester student accommodation for £17.2m
AEW UK Long Lease REIT plc ("the Company") is pleased to announce the acquisition of an Audi showroom in Huddersfield and Bramall Court in Manchester for a total of £17.2m. The acquisitions reflect net initial yields of 5.89% and 5.35% respectively.
The Audi dealership is located in the Trident Business Park in Huddersfield, a prime motor retail location. The 29,345 sq ft purpose built facility includes a showroom, offices, workshop and valeting facilities and was purchased for £6.3m. The recently refurbished property is let to VW Group UK and provides a weighted average unexpired lease term of 7.7 years to expiry.
Bramall Court, a 94,290 sq ft student accommodation block, was purchased for £10.9m. The asset is located on Cannon Street, 0.8 miles east of the main campus of the University of Salford and one mile from Manchester City Centre. The asset is let to Mears Group plc on a 24-year unexpired lease with annual rent reviews linked to CPI.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "We are delighted to have completed these acquisitions, further broadening the diversity of our investments. We continue to look for opportunities to create shareholder value through targeting alternative property sectors."
The transactions increase the total amount invested by AEW UK Long Lease REIT plc since listing to £66.2m. In addition to this, the Manager has a further 11 assets under offer and expects to make additional announcements in the coming weeks.
AEW UK Long Lease REIT plc raised £80.5m from institutional and retail investors at its IPO in June and at that time it stated its expectation to substantially invest the net proceeds within nine months of listing. The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation (RPI or CPI) thereafter.
The Company entered the REIT regime with effect from 13 October 2017 following the submission of the application to HM Revenue and Customs.
ENDS
About AEW UK Long Lease REIT
AEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a sustainable, secure and predictable income return, whilst at least maintaining capital values in real terms, by investing in a diversified portfolio of UK properties, with an attractive entry yield, predominately in alternative and specialist sectors. It will invest in a diverse range of sectors that are underrepresented in institutional portfolios including leisure, healthcare, education, hotels, student accommodation, supported living and automotive. At its IPO on 6 June 2017, AEWL raised £80.5m from institutional and retail investors. At least 85% of gross passing rent from the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years at the time of investment.
About AEW UK Investment Management LLP
The Investment Manager AEW UK Investment Management LLP is a 50:50 joint venture between the principals of the Investment Manager and AEW. It employs a well-resourced team comprising 25 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €57 billion of assets under management as at 30 September 2017. AEW Group comprises AEW SA and AEW Capital Management L.P., a U.S. registered investment manager and their respective subsidiaries. In Europe, as at 30 September 2017, AEW Group managed €26.6 billion in value in properties of all types located in 15 countries, with close to 400 staff.
AEW UK
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Alex Short |
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Laura Elkin |
+44(0) 207 016 4880
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Nicki Gladstone |
+44(0) 207 016 4869
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+44(0) 771 140 1021
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Company Secretary |
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Link Company Matters Limited |
+44(0) 139 247 7509
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Temple Bar Advisory Ed Orlebar Tom Allison Lucy Featherstone
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+44(0) 7738 724 630 +44(0) 7789 998 020 +44(0) 7789 374 663
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About AEW Europe
AEW is one of the world's largest real estate asset managers, with over €57bn of assets under management as at 30 September 2017. AEW has over 600 employees, with its main offices located in Boston, London, Paris and Hong Kong and offers a wide range of real estate investment products including comingled funds, separate accounts and securities mandates across the full spectrum of investment strategies. AEW represents the real estate asset management platform of Natixis Investment Managers, one of the largest asset managers in the world.
As at 30 September 2017, AEW managed €26.6bn of real estate assets in Europe on behalf of a number of funds and separate accounts. AEW has close to 400 employees based in 10 offices across Europe and has a long track record of successfully implementing core, value-add and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of over €17.5bn of real estate across European markets.
LEI: 213800MPBIJS12Q88F71
This information is provided by RNS
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