AEW UK REIT PLC Sale of Unit 1, Clarke Road, Milton Keynes (4220T)

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RNS Number : 4220T

AEW UK REIT PLC

20 March 2023

20 March 2023

AEW UK REIT plc

Sale of Unit 1, Clarke Road, Milton Keynes

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that it has completed the sale of its industrial holding at Clarke Road, Milton Keynes, for GBP2,750,000 (circa GBP91 per sq ft), reflecting a 6.3% net initial yield (NIY).

The 30,262 sq ft industrial unit was acquired in October 2015 for GBP1,526,000 (circa GBP50 per sq ft), reflecting an 8.3% NIY. Since acquisition, the property has been re-let to FMG Repair Services Limited, with a guarantor from Northgate Vehicle Hire, on a 10-year lease, with a 5-year tenant break option. By securing a stronger covenant on a longer lease, the sale realises significant profit, exceeding the 31 December 2022 valuation of GBP2,580,000 by circa 6.6%, and the price paid at acquisition by circa 80.2%.

After completion of the sale, the Company will have approximately GBP7.5 million to deploy on an attractive pipeline of higher yielding assets which will be more accretive to the Company's earnings.

Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented : "Clarke Road has performed well, delivering excellent returns to AEWU shareholders since original investment. The value created through completion of the new letting presented an opportunity to crystallise the asset's strong performance, with the intention of reinvesting the proceeds into higher yielding opportunities and, as such, we expect to make further purchase announcements in the coming months."

ENDS

 
 Enquiries 
 AEW UK 
 Laura Elkin                       [e-mail] 
                                   [phone] 
 Henry Butt                        [e-mail] 
                                   [phone] 
 Nicki Gladstone                   [e-mail] 
                                   [phone] 
 Company Secretary 
 Link Company Matters Limited      [e-mail] 
                                   [phone] 
 
 TB Cardew                         [e-mail] 
 Ed Orlebar                        [phone] 
 Tania Wild                        [phone] 
 Henry Crane                       [phone] 
 
 Liberum Capital 
 Darren Vickers / Owen Matthews    [phone] 
 

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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March 20, 2023 03:00 ET (07:00 GMT)