AEW UK REIT plc: Acquisition of Industrial Estate (1146730)

 
 AEW UK REIT plc (AEWU) 
AEW UK REIT plc: Acquisition of Industrial Estate 
 
10-Nov-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                 10 November 2020 
 
        Acquisition of Industrial Estate 
 
  AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce that it 
 has acquired the multi-let Westlands Distribution Park in Weston Super Mare 
                  for a purchase price of GBP5.4m. 
 
  The purchase price reflects a low capital value of GBP175,000 per acre which 
 provides strong potential for future capital value growth based upon nearby 
  comparable land transactions which range between GBP350,000 and GBP500,000 per 
                 acre for other commercial and residential uses. 
 
        The estate provides a net initial yield of 6.4% which is expected to 
  increase to at least 7.4% within the medium term. The average passing rent 
        of GBP1.50 per sq ft also provides strong potential for rental growth. 
 
   The established 323,437 sq ft estate is let to 15 tenants including North 
       Somerset District Council who make up 30% of the income stream. It is 
     located 3 miles from the M5 Motorway and 20 miles south of Bristol city 
                 centre. 
 
     Alex Short and Laura Elkin, Portfolio Managers, AEW UK REIT, commented: 
    "Following the very profitable sale of our largest asset in Corby during 
  May, we have undertaken cautious analysis of the investment market and our 
    pipeline in the intervening months when looking to replace Corby and its 
 income stream within the portfolio. This latest acquisition is an excellent 
   fit for the portfolio as it offers significant potential for future value 
  accretion in addition to its very low level of passing rent which provides 
                 strong prospects for future rental growth" 
 
     Following completion of the above purchase, the Company holds cash of c 
GBP9.24 million. The Company's portfolio exposure is broken down as follows by 
                 sector: 
 
Sector                Valuation at 30 September 2020 
            (including Weston Super Mare at purchase 
                                               date) 
                      GBP million                    % 
Industrial                96.01                 54.3 
    Office                45.85                 25.9 
    Retail                21.90                 12.4 
     Other                13.00                  7.4 
     Total               176.76                100.0 
 
                   Enquiries 
                      AEW UK 
                  Alex Short          [e-mail] 
                                        [phone] 
                 Laura Elkin         [e-mail] 
 
                                        [phone] 
             Nicki Gladstone [e-mail] 
                                        [phone] 
           Company Secretary 
Link Company Matters Limited     [e-mail] 
                                        [phone] 
 
                   TB Cardew               [e-mail] 
                  Ed Orlebar           [phone] 
              Lucas Bramwell           [phone] 
 
             Liberum Capital 
Gillian Martin/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 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 GBP58m. 
 
 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 [1] [2] 
 
                 About AEW UK Investment Management LLP 
 
AEW UK Investment Management LLP employs a well-resourced team comprising 26 
 individuals covering investment, asset management, operations and strategy. 
   It is part of AEW Group, one of the world's largest real estate managers, 
   with &euro70.2bn of assets under management as at 30 June 2020. 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 
 June 2020, AEW Group managed &euro33.6bn of real estate assets on behalf of 
    a number of funds and separate accounts with over 420 staff located in 9 
        offices. The Investment Manager is a 50:50 joint venture between the 
principals of the Investment Manager and AEW. In May 2019, AEW UK Investment 
 Management LLP was awarded Property Manager of the Year at the Pensions and 
                 Investment Provider Awards. 
 
                 www.aewuk.co.uk [3] 
 
                 LEI:21380073LDXHV2LP5K50 
 
ISIN:           GB00BWD24154 
Category Code:  MSCM 
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.:   87515 
EQS News ID:    1146730 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

November 10, 2020 02:00 ET (07:00 GMT)