AEW UK REIT PLC Acquisition of high yielding mixed use asset, York (4243G)
July 19 2023 - 2:00AM
UK Regulatory
TIDMAEWU
RNS Number : 4243G
AEW UK REIT PLC
19 July 2023
19 July 2023
AEW UK REIT plc
Acquisition of high yielding mixed use asset in York
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased
to announce that it has completed the purchase of a freehold,
mixed-use asset in York city centre for GBP10,020,000, reflecting
an attractive net initial yield of 9.3%.
The 99,769 sq ft asset is multi-let to five tenants. 75% of the
income is received from National Car Parks Ltd ("NCP"), who have
occupied the 297-space car park since 2005 and have a further nine
years remaining on their lease. The lease benefits from a 2027 rent
review which will increase rent payable in line with the Retail
Price Index, uncapped, resulting in a forecast reversionary yield
in excess of 10%. NCP is one of the UK's largest car park operators
with an estate of approximately 189,000 spaces over 642 sites. The
company is owned by Park24, a Japanese based multi-national parking
operator, and the Development Bank of Japan. Another four tenants
occupy the ground and first floor retail and office accommodation
fronting onto George Hudson Street.
The site totals 0.8 acres and is located inside the York City
Wall, bordering the historic centre of the city, within the
"Micklegate Quarter". It is situated in a prominent corner position
on George Hudson Street and Tanner Row, within a 10-minute walk of
key visitor attractions, including York Minster, the Yorkshire
Museum and the York Dungeon. York's key retail provisions at
Coppergate Shopping Centre, Coney Street, Davygate and Parliament
Street are all within a 7-minute walk.
Following purchase of York, cash available for deployment in to
high yielding pipeline assets is circa GBP15.0m.
Commenting on the purchase, Laura Elkin, Portfolio Manager of
AEW UK REIT said, "We are pleased to have purchased this very
well-located mixed-use asset at a day one yield that will be
accretive to the Company's earnings. Our due diligence has shown
that NCP trades well from the location and we expect this to
continue given the popularity of York as a destination. Completion
of the acquisition marks the strategic reinvestment into higher
yielding assets of capital generated from recent sales. We continue
to analyse an interesting pipeline of potential acquisitions and
expect to make further purchase announcements in due course, which
will bring us closer to our short-term target of full deployment of
capital."
ENDS
Enquiries
AEW UK
Laura Elkin laura.elkin@eu.aew.com
+44(0) 7917 058 337
Henry Butt henry.butt@eu.aew.com
+44(0) 7920 499 076
Nicki Gladstone nicki.gladstone-ext@eu.aew.com
+44(0) 7711 401 021
Company Secretary
Link Company Matters Limited aewu.cosec@linkgroup.co.uk
+44(0) 7548773155
TB Cardew AEW@tbcardew.com
Ed Orlebar +44 (0) 7738 724 630
Tania Wild +44 (0) 7425 536 903
Henry Crane +44 (0) 7918 207 157
Liberum Capital
Darren Vickers / Owen Matthews +44 (0) 20 3100 2222
Notes to Editors
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 GBP15 million), on
shorter occupational leases in strong commercial locations across
the United Kingdom. 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 income streams. AEWU is currently paying an annualised dividend
of 8p per share.
The Company was listed on the Official List of the Financial
Conduct Authority and admitted to trading on the
Main Market of the London Stock Exchange on 12 May 2015. www.aewukreit.com
LEI: 21380073LDXHV2LP5K50
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team
comprising 29 individuals covering investment, asset management,
operations and strategy. It is part of AEW Group, one of the
world's largest real estate managers, with EUR84.9bn of assets
under management as at 31 December 2022. 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 2022, AEW Group managed EUR38.5bn of real estate assets on
behalf of a number of funds and separate accounts with over 470
staff located in 10 locations.
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