AEW UK REIT PLC AEW UK REIT acquires Gloucester office block (8980Z)
December 20 2017 - 3:18AM
UK Regulatory
TIDMAEWU
RNS Number : 8980Z
AEW UK REIT PLC
20 December 2017
20 December 2017
AEW UK REIT acquires Gloucester office block for GBP3.1m
AEW UK REIT plc ("the Company"), which directly owns a
diversified portfolio of regional UK commercial property assets, is
pleased to announce the acquisition of Cedar House, Spa Road,
Gloucester for GBP3.1m.
The five-storey office block, which is located within the city
centre adjacent to Gloucester Park, has been acquired for a price
reflecting a low capital value of only GBP80 per sq ft and an
attractive net initial yield of 9.1%. The property is currently let
to the Secretary of State for Communities & Local Government
for use as a Job Centre, with a short unexpired lease term of 0.3
years. However, the tenant has already served a Section 26 notice
to renew the lease and as such the Investment Manager believes that
the income can be extended.
The property is situated within a mixed office and residential
area and as such the Investment Manager believes that it provides
good long-term alternative use potential. Public transport is
easily accessible, with good links to Gloucester Railway Station
and a central bus route.
The asset provides a total floor area of 38,427 sq ft and
includes substantial car parking facilities, with 103 spaces
available.
Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are
delighted to have completed this latest acquisition following our
successful capital raise in October. Heading into 2018, we are
pleased to have an attractive pipeline of investment opportunities
ahead of us and with further assets under offer we expect to make
more acquisition announcements shortly."
On 20 October AEW UK REIT announced that it had raised GBP28.1m
through the initial issue of the Share Issuance Programme, as
described in the prospectus published by the Company on 28
September 2017.
ENDS
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 GBP10m), 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 GBP51m.
The Company 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.
AEWU is currently paying an annualised dividend of 8p per
share.
www.aewukreit.com
About AEW UK Investment Management LLP
The Investment Manager AEW UK Investment Management LLP is a
50:50 joint venture between the principals of the Investment
Manager and AEW. It employs a well-resourced team comprising 25
individuals covering investment, asset management, operations and
strategy. It is part of AEW Group, one of the world's largest real
estate managers, with EUR57 billion of assets under management as
at 30 September 2017. AEW Group comprises AEW SA and AEW Capital
Management L.P., a U.S. registered investment manager and their
respective subsidiaries. In Europe, as at 30 September 2017, AEW
Group managed EUR26.6 billion in value in properties of all types
located in 15 countries, with close to 400 staff.
AEW UK Enquiries:
Alex Short alex.short@aeweurope.com
+44(0) 207 016 4880
Laura Elkin laura.elkin@aeweurope.com
+44(0) 207 016 4869
Nicki Gladstone nicki.gladstone-ext@aeweurope.com
+44(0) 771 140 1021
Company Secretary
Link Company Matters aewu.cosec@linkgroup.co.uk
+44(0) 207 954 9547
Temple Bar Advisory +44(0) 207 002 1510
Ed Orlebar +44(0) 7738 724 630
Tom Allison +44(0) 7789 998 020
Alycia MacAskill +44(0) 7876 222 703
About AEW Europe
AEW is one of the world's largest real estate asset managers,
with over EUR57bn of assets under management as at 30 September
2017. AEW has over 600 employees, with its main offices located in
Boston, London, Paris and Hong Kong and offers a wide range of real
estate investment products including comingled funds, separate
accounts and securities mandates across the full spectrum of
investment strategies. AEW represents the real estate asset
management platform of Natixis Global Asset Management, one of the
largest asset managers in the world.
As at 30 September 2017, AEW managed EUR26.6bn of real estate
assets in Europe on behalf of a number of funds and separate
accounts. AEW has close to 400 employees based in 10 offices across
Europe and has a long track record of successfully implementing
core, value-add and opportunistic investment strategies on behalf
of its clients. In the last five years, AEW has invested and
divested a total volume of over EUR17.5bn of real estate across
European markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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