AEW UK REIT PLC Purchase of Property (4509C)
October 16 2015 - 2:00AM
UK Regulatory
TIDMAEWU
RNS Number : 4509C
AEW UK REIT PLC
16 October 2015
16 October 2015
AEW UK REIT plc
AEW UK REIT PLC ACQUIRES PROPERTIES FOR GBP8.79m
The Board of AEW UK REIT plc (the "Company") is pleased to
announce the completion of two further acquisitions for GBP8.79m
(in each case, net of acquisition costs).
Barnstaple Retail Park was acquired for GBP6.79m reflecting a
net initial yield and reversionary yield of 8.5%. It comprises a
fully let retail warehouse scheme, extending to 50,950 sq ft. The
Park is anchored by a 35,690 sq ft B&Q and includes a 9,605 sq
ft unit let to Sports Direct and a 5,717 sq ft unit let to
Poundland. The leases provide a WAULT of 7.3 years to break and 8.6
years to expiry, producing a total rental income of GBP610,680
pa.
Carrs Coatings, Eagle Road, Redditch was acquired for GBP2.0m
reflecting a net initial yield of 9.5% and reversionary yield of
7.5%. Carrs Coatings is located on the established North Moons Moat
Industrial Estate to the east of Redditch, a short distance from
Junction 3 of the M42. The site extends to circa 1.7 acres and
accommodates an industrial warehouse building of 37,833 sq ft. The
property is single let to Carrs Coatings Ltd providing an unexpired
term of 13 years with annual fixed rental uplifts in line with
RPI.
With these purchases, the Company has approximately GBP74m
invested, including GBP9.75m in AEW UK's Core Property Fund, and
eleven properties.
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, REIT Portfolio Manager at
AEW UK Investment Management LLP, said, "We are pleased to have
acquired Barnstaple Retail Park, which is a well located scheme
with a strong tenant line up. We are also pleased to have acquired
another industrial asset for the Company in Carrs Coatings and
North Moons Moat comprises a very well established estate. We also
feel positive that the pricing of this asset is well supported by
its underlying vacant possession value. We continue to make good
progress with our acquisition timetable and, based upon a very
interesting pipeline of similar deals, we expect to be able to make
further announcements very shortly."
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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