AEW UK REIT plc: AEW UK REIT acquires Leeds industrial estate (776471)

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 AEW UK REIT plc (AEWU) 
AEW UK REIT plc: AEW UK REIT acquires Leeds industrial estate 
 
15-Feb-2019 / 10:04 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                                                            15 February 2019 
 
          AEW UK REIT acquires Leeds industrial estate for GBP7.3m 
 
 AEW UK REIT plc ("the Company") is pleased to announce that it has acquired 
an industrial asset, Lockwood Court, Parkside Industrial Estate in Leeds for 
  a gross purchase price of GBP7.3m, reflecting an attractive initial yield of 
                                                            7.7%. 
 
      The 187,794 sq ft warehouse asset is fully let to LWS Yorkshire Ltd, a 
     logistics and storage provider for Harrogate Spring Water, on a 10 year 
 lease from October 2018. The lease provides a low passing rent of GBP3.22 per 
     sq ft which, together with tight supply, forms a strong base for future 
                                                    potential rental growth. 
 
Located two miles south of Leeds City Centre and close to J25 of the M62 and 
  J40 of the M1, Parkside Industrial Estate is a well-established industrial 
      and commercial area with a history of attracting regional and national 
                                                            occupiers. 
 
         Alex Short, Portfolio Manager, AEW UK REIT, commented: "This latest 
  acquisition is a very attractive addition to the portfolio due to both its 
 high income return and potential for value growth in the future. Offering a 
  low passing rent and located in an area of high tenant demand with limited 
     property supply, the asset fundamentals mirror those of the portfolio's 
  strongest performing industrials from which we saw capital value growth of 
 2.8% during Q4 last year alone. These low rented industrial assets now make 
                                    up over 45% of the portfolios holdings." 
 
Following the acquisition of this property the Company's borrowings now show 
           a gross loan to value of 25.0%. The Company's holdings comprise a 
     diversified portfolio of regional UK commercial property assets showing 
    exposure to the major property sectors in line with the weightings shown 
below. As per the Company's Investment Restrictions, maximum exposure to any 
                        of the below sectors at the time of purchase is 50%. 
 
Industrial 47.1% 
    Office 21.7% 
    Retail 16.0% 
     Other 15.2% 
 
                              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 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. 
 
                                                       www.aewukreit.com [1] 
 
                                      About AEW UK Investment Management LLP 
 
AEW UK Investment Management LLP employs a well-resourced team comprising 23 
 individuals covering investment, asset management, operations and strategy. 
   It is part of AEW Group, one of the world's largest real estate managers, 
with just over EUR63.5bn of assets under management as at 30 September 2018. 
          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 2018, AEW Group managed nearly EUR30bn in value in 
  properties of all types, with close to 400 staff located in 9 offices. The 
   Investment Manager is a 50:50 joint venture between the principals of the 
                                                 Investment Manager and AEW. 
 
                                                            AEW UK Enquiries 
 
                                            Alex Short [e-mail] 
 
                                          Laura Elkin [e-mail] 
 
                                                            Media Enquiries 
 
                              Nicki Gladstone [e-mail] 
 
                                                          [phone] 
 
                           TB Cardew (Financial PR advisor) [e-mail] 
 
                                              Ed Orlebar [phone] 
 
                                          Emma Crawshaw [phone] 
 
                                       Lucy Featherstone [phone] 
 
                                                            About AEW 
 
AEW is one of the world's largest real estate asset managers, with EUR63.5bn 
        of assets under management as at 30 September 2018. 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 Investment Managers, one of the largest asset 
                                                      managers in the world. 
 
As at 30 September 2018, AEW managed almost EUR30bn of real estate assets in 
  Europe on behalf of a number of funds and separate accounts. AEW has close 
      to 400 employees based in 9 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 EUR20bn of real estate 
                                                    across European markets. 
 
                                                            Disclaimer 
 
    This communication cannot be relied upon as the basis on which to make a 
decision to invest in the Company. This communication does not constitute an 
         invitation or inducement to subscribe to any particular investment. 
 
ISIN:           GB00BWD24154 
Category Code:  ACQ 
TIDM:           AEWU 
LEI Code:       21380073LDXHV2LP5K50 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   7509 
EQS News ID:    776471 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=9220892e63355ca6947a3a3423a3bac8&application_id=776471&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

February 15, 2019 05:05 ET (10:05 GMT)