AEW UK REIT PLC Purchase of Property (5213S)

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RNS Number : 5213S

AEW UK REIT PLC

08 July 2015

8 July 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTIES FOR GBP14.65m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of two further acquisitions for total consideration of GBP14.65m.

Sandford House, located in Solihull town centre, provides 34,418sq ft of offices with parking for 130 vehicles. It was acquired for GBP5.4m. The property is fully let to a government department with a tenant break option in just under 2 years. The purchase price reflects a net initial yield of 10.9% and a capital value of GBP157 per sq ft.

69-75 Above Bar Street, Southampton is a prime retail parade of 3 units extending to 27,247sq ft. It was acquired for GBP9.25m. 40 per cent of the income is secured against Barclays Bank with other units occupied by Blacks and Waterstones, providing an average weighted unexpired lease term of 6.2 years. The acquisition reflects a net initial yield of 8.75%.

The purchases are the second and third for the Company which now has c. GBP33m invested, including GBP9.75m 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 GBP100.5m.

Commenting on the deals, Alex Short, the Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have now completed three acquisitions for the Company. Purchases are progressing well and in line with our timetable as set out to investors prior to the REIT launch. We currently have under offer, or are working to agree terms on, a range of similar deals and therefore 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 
  Ravi Anand/Katie Standley      020 7832 0900

This information is provided by RNS

The company news service from the London Stock Exchange

END

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