AEW UK REIT PLC Purchase of Property (0682Z)
September 15 2015 - 4:08AM
UK Regulatory
TIDMAEWU
RNS Number : 0682Z
AEW UK REIT PLC
15 September 2015
15 September 2015
AEW UK REIT plc
AEW UK REIT PLC ACQUIRES PROPERTY FOR GBP5.3m
The Board of AEW UK REIT plc (the "Company") is pleased to
announce the completion of a further acquisition for GBP5.3m (net
of acquisition costs).
1-15 Fargate & 18-36 Chapel Walk, Sheffield provides a total
of 40,128sq ft with 8 retail units spread over basement, ground and
first floors. Two of the retail units front onto the pedestrianised
Fargate Street with six fronting the adjoining retail arcade of
Chapel Walk. Tenants include Paperchase, H Samuel and Claire's
Accessories with the lettings providing a WAULT of 3.8 years to
breaks and 5.3 years to expiry. Upper floors from first to fifth
are currently vacant with development potential for a number of
uses including student accommodation, subject to planning. The
purchase price reflects a net initial yield of 8.25%, inclusive of
rental guarantees, and a reversionary yield of 9.1%, following the
sale of the upper parts.
With this purchase, the Company has approximately GBP65m
invested, including GBP9.75m in AEW UK's 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 deal, Alex Short, the Company's Portfolio
Manager at AEW UK Investment Management LLP, said, "We are pleased
to have acquired this latest asset due to its busy location within
Sheffield's prime retail pitch and also the ability to add value
through obtaining planning consent for the development of the upper
floors. With this acquisition we are still on target to meet our
acquisition timetable and 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
END
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