AEW UK REIT PLC Acquisition of industrial building in Deeside (0427K)
July 04 2017 - 3:54AM
UK Regulatory
TIDMAEWU
RNS Number : 0427K
AEW UK REIT PLC
04 July 2017
4 July 2017
AEW UK REIT PLC
AEW UK REIT acquires industrial building in Deeside, North
Wales
AEW UK REIT plc (LSE: AEWU) (the "Company"), which owns a
diversified portfolio of 30 regional UK commercial property assets,
announces the acquisition of a c. 97,000 sq ft single-let
industrial building in Deeside, North Wales, for c GBP4.3 million,
reflecting a Net Initial Yield of 7.9% and a capital value of GBP45
per sq ft.
The asset, which is located within the established Deeside
Industrial Park, is fully let to global enterprise Magellan
Aerospace, for a term of just under 5 years to break and just under
10 years to expiry. The current passing rent of GBP3.75 per sq ft
is significantly below that seen at other competing centres within
the North West, such as in Warrington and Manchester.
Deeside Industrial Park has been established since the 1970s and
totals in excess of 600 acres, comprising over 5 million sq ft of
industrial and warehouse accommodation attracting a variety of
manufacturing and distribution companies. The estate benefits from
its close proximity to the national motorway network, being within
5 miles of both the M56 and M53.
Commenting on the deal, Alex Short, the Company's Portfolio
Manager at AEW UK Investment Management LLP, said, "Deeside has
seen robust occupational performance over the past 18 months with
overall vacancy levels on the estate falling. Occupiers from across
the region have seen Deeside as an attractive location due to
higher rental levels in competing centres which have also risen
sharply. The acquisition pricing also looks attractive as it is
well supported by the asset's underlying vacant possession value
which is an important metric for the protection of downside
risk."
ABOUT AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total
return to shareholders by investing predominantly in smaller
commercial properties (typically less than GBP10 million), on
shorter occupational leases, in strong commercial locations across
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.
Since IPO it has raised a further GBP23m.
Since its IPO in May 2015, AEWU has invested a total of GBP144
million across 31 regional commercial property assets. It is
currently invested in office, retail, industrial and leisure
assets, with a focus on active asset management, repositioning the
properties and improving the quality of the income stream. Whilst
occupational demand in strategic locations remains, securing
tenants on shorter leases allows AEWU to crystallise value through
rent reviews and lease re--gears.
AEWU is currently paying a dividend of 8p per share p.a. and
targets a total annual return, over the medium term, in excess of
12% on the IPO issue price, net of all fees.
Real estate investment specialist AEW UK Investment Management
LLP is a joint venture between the management team, which together
has an average of 25 years of real estate experience, and AEW
Europe, which has EUR19.1 billion of real estate assets under
management. AEW UK Investment Management LLP has a strong and
expert asset management team, with a proven record of identifying
and delivering value from real estate assets across all
sectors.
www.aewukreit.com
Enquiries
AEW UK
Alex Short
alex.short@aeweurope.com
+44(0) 20 7016 4880
Nicki Gladstone
nicki.gladstone-ext@aeweurope.com
+44(0) 20 7016 4880
Company Secretary
Gareth Faith, Capita Company Secretarial
Services
gareth.faith@capita.co.uk
+44(0) 020 7954 9547
FTI Consulting
Richard Sunderland, Claire Turvey,
Richard Gotla
aewuk@fticonsulting.com
+44(0) 2037 271 000
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQRIMRTMBIMMLR
(END) Dow Jones Newswires
July 04, 2017 03:54 ET (07:54 GMT)
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From Apr 2024 to May 2024
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From May 2023 to May 2024