AEW UK Long Lease REIT PLC AEW UK Long Lease REIT confirms first acquisition (9040P)
September 06 2017 - 2:00AM
UK Regulatory
TIDMAEWL
RNS Number : 9040P
AEW UK Long Lease REIT PLC
06 September 2017
6 September 2017
AEW UK Long Lease REIT plc completes first acquisition for
GBP6.3m
AEW UK Long Lease REIT plc ("the Company") is pleased to
announce the acquisition of a hotel and retail unit on Princes
Street, Swindon for GBP6.3m. The 35,000 sq ft property, which
comprises a Travelodge hotel and Salvation Army centre, provides a
weighted average unexpired lease term of 23 years, with a net
initial yield of 5.5%. The lease to Travelodge delivers 95% of the
income received from the asset and provides the Company with 5
yearly rental uplifts linked to RPI. This is the Company's first
acquisition since listing in June 2017.
The Company has also exchanged contracts to acquire the
leasehold interest in the Wet 'n' Wild Water Park in Royal Quays,
Newcastle-upon-Tyne for GBP2.9m. The property comprises a purpose
built indoor water park totalling 37,131 sq ft and is let to Serco
Leisure Operating Ltd, a wholly owned subsidiary of Serco Plc, for
an unexpired term of 22 years with annual rental uplifts linked to
RPI. The acquisition reflects a net initial yield of 6.1%.
Completion of this acquisition is expected to follow within the
next few weeks once assignment of the head lease has been
approved.
Alex Short, Director of AEW UK Investment Management LLP, and
Portfolio Manager of the Company said: "We are delighted to have
secured our first acquisition and exchanged on a second asset. Both
properties reflect our commitment to investing in sectors that are
often underrepresented in institutional portfolios. The property
pipeline is looking positive and we will continue to pursue
attractive opportunities that are aligned with our rigorous
investment approach."
AEW UK Long Lease REIT plc raised GBP80.5m from institutional
and retail investors at its IPO in June and at that time it stated
its expectation to substantially invest the net proceeds within
nine months of listing. The Company is targeting an annual dividend
of 5.5 pence per share paid quarterly, once fully invested and
levered, with an ambition to grow in line with UK inflation
thereafter.
AEW UK
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
Capita Company Secretarial aewl-cosec@capita.co.uk
Services Limited +44(0) 139 247 7509
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 UK Long Lease REIT
AEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a
sustainable, secure and predictable income return, whilst at least
maintaining capital values in real terms, by investing in a
diversified portfolio of UK properties, with an attractive entry
yield, predominately in alternative and specialist sectors. It will
invest in a diverse range of sectors that are underrepresented in
institutional portfolios including leisure, healthcare, education,
hotels, student accommodation, supported living and automotive. At
its IPO on June 6 2017, AEWL raised GBP80.5m from institutional and
retail investors. At least 85% of the portfolio's leases will
contain inflation-linked rent reviews, and average initial
unexpired leases in excess of 18 years.
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team
comprising 25 individuals covering investment, asset management,
operations and strategy. It is part of AEW Global, one of the
world's largest real estate managers, with EUR60.1 billion of
assets under management as at 31 December 2016. AEW Global
comprises AEW Europe SA and AEW Capital Management L.P., a U.S.
registered investment manager. In Europe, as at 31 December 2016,
AEW Global managed EUR26.0 billion in value in properties of all
types located in 14 countries, with over 380 staff. The Investment
Manager is a 50:50 joint venture between the principals of the
Investment Manager and AEW Europe.
This information is provided by RNS
The company news service from the London Stock Exchange
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