AEW UK REIT PLC Purchase of Property (0827W)

TIDMAEWU

RNS Number : 0827W

AEW UK REIT PLC

14 August 2015

AEW UK REIT plc

AEW UK REIT PLC ACQUIRES PROPERTY FOR GBP12.2m

The Board of AEW UK REIT plc (the "Company") is pleased to announce the completion of a further acquisition for GBP12.2m (including an amount for rent top up; net of acquisition costs).

225 Bath Street, Glasgow is currently fully let to six tenants and provides 87,827 sq ft of offices over seven floors with parking for 32 cars. The purchase price reflects a net initial yield of 10.0% and a capital value of GBP139 per sq ft. The property provides a total passing rent of GBP1,296,307 pa (including the rental top up).

The investment provides an average weighted unexpired lease term of 2.3 years to breaks and 4.5 years to expiry.

The ERV for the property is just over GBP1,315,000 which equates to a reversionary yield of 10.2%.

The purchase is the fifth for the Company which now has c. GBP52m 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.

Alex Short, the Portfolio Manager at AEW UK Investment Management LLP said, "We are pleased to have completed on another acquisition for the REIT, in line with our timetable as set out to investors prior to the REIT launch. The REIT is currently under offer, or close to being under offer on, a range of similar deals and consequently 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

This information is provided by RNS

The company news service from the London Stock Exchange

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