AEW UK REIT plc: Acquisition of Industrial Estate (1146730)
November 10 2020 - 1:00AM
UK Regulatory
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 alex.short@eu.aew.com
+44(0) 20 7016 4848
Laura Elkin laura.elkin@eu.aew.com
+44(0) 20 7016 4869
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) 1392 477 509
TB Cardew aew@tbcardew.com
Ed Orlebar +44 (0) 7738 724 630
Lucas Bramwell +44 (0) 7939 694 437
Liberum Capital
Gillian Martin/Owen Matthews +44 (0) 20 3100 2000
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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November 10, 2020 02:00 ET (07:00 GMT)
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