AEW UK REIT PLC AEW UK REIT sells Nottingham office for £3.65m (4779K)

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RNS Number : 4779K

AEW UK REIT PLC

11 April 2018

AEW UK REIT plc sells Nottingham office block for GBP3.65m

AEW UK REIT plc ("the Company"), which directly owns a diversified portfolio of regional UK commercial property assets, is pleased to announce the sale of the office accommodation at Pearl Assurance House, Nottingham for GBP3.65m.

The sale comprises the first to the ninth floors, a ground floor reception and car parking spaces, providing a total area of 41,262 sq ft, and reflecting a net initial yield (NIY) of 6.9%.

Pearl Assurance House was purchased by the Company in May 2016 for GBP8.15m. The Company will retain the ground floor accommodation in this busy city centre location, totalling 28,432 sq ft, let to national retail operators including Costa Coffee, Poundland and Lakeland. The retained element will provide the Company with an ongoing yield of 9.5% based on its component value of GBP5.26m.

Alex Short, Portfolio Manager, AEW UK REIT, commented: "Having completed numerous asset management initiatives within this property, including the completion of lease renewals across three floors and gaining consent for residential development across the upper floors, we believe that this is the right time to sell the office component of the asset having maximised its value in the short term. We are pleased to retain the ground floor, which provides an attractive yield for the Company in a major city centre location."

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 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 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 EUR58.5 billion of assets under management as at 31 December 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 31 December 2017, AEW Group managed EUR28.4 billion in value in properties of all types located in 15 countries, with close to 600 staff.

Enquiries:

AEW UK

 
Alex Short                     alex.short@eu.aew.com 
                               +44(0) 207 016 4880 
 
  Laura Elkin                   laura.elkin@eu.aew.com 
                               +44(0) 207 016 4869 
 
  Nicki Gladstone               nicki.gladstone-ext@eu.aew.com 
                               +44(0) 771 140 1021 
Company Secretary 
Link Company Matters Limited   aewu.cosec@linkgroup.co.uk 
                                +44(0) 207 954 9547 
Media Enquiries 
 TB Cardew (Financial PR         aew@tbcardew.com 
 advisor)                        +44(0) 7738 724 630 
 Ed Orlebar                      +44(0) 7789 998 020 
 Tom Allison                     +44(0) 7789 374 663 
 Lucy Featherstone

About AEW Europe

AEW is one of the world's largest real estate asset managers, with EUR58.5bn of assets under management as at 31 December 2017. AEW has close to 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 Investment Managers, one of the largest asset managers in the world.

As at 31 December 2017, AEW managed EUR28.4bn 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.

www.aeweurope.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 11, 2018 02:00 ET (06:00 GMT)

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