AEW UK REIT plc (AEWU) AEW UK REIT plc: Acquisition of PRYZM Nightclub, Cardiff 16-Feb-2022 / 07:00 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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16 February 2022

AEW UK REIT Plc

Acquisition of PRYZM Nightclub, Cardiff

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce the acquisition of the PRYZM Nightclub in Cardiff for a purchase price of GBP3,625,000 / GBP92 per sq ft. The purchase price reflects a net initial yield of 8%, with an anticipated reversionary yield of circa 9%. The acquisition is accretive to EPRA EPS and, following the recent acquisition of Central Six Retail Park in Coventry for GBP16,411,000, takes AEWU gearing in line with the target of 30-35%.

The acquisition demonstrates the Manager's view that there continue to be interesting opportunities to acquire assets that provide strong income yields to support the consistent dividend payment. The asset presents the opportunity to drive income return through the term of the tenancy to reversion.

The property is located in a strong pitch in Cardiff city centre, in close proximity to the Principality Stadium and St David's Shopping Centre, and prominent within the leisure and late-night district. It provides 39,469 sq ft of nightclub and bar accommodation. The property is single-let to a subsidiary of Rekom UK (formerly The Deltic Group), operating as "PRYZM" and "Steinbeck & Shaw", providing over 14 years unexpired term. Rekom UK is one of the largest specialist late-night operators in the UK with 46 clubs and bars across a number of brands including PRYZM, ATIK and Bar & Beyond. Cardiff University and the University of Wales are located approximately 300m from the property, contributing to the total student population of circa 75,000.

Alex Short, Portfolio Manager, AEW UK REIT plc, commented: "We are pleased to have acquired the PRYZM Nightclub in Cardiff following the removal of Covid restrictions in Wales permitting the reopening of leisure facilities. It has been purchased for a price that will deliver a strong initial yield which will be immediately accretive to shareholder returns, and the tenant is up to date with its rental commitments despite the disruption to trade caused by the pandemic. The property is well located and demand for leisure assets remains robust with a limited number of large capacity venues available. We are pleased to add this asset to the portfolio and will continue to target acquisitions where we believe values offer the opportunity to deliver both strong income and capital performance."

                   Valuation 
Sector 
                   as provided by Knight Frank as at 31 December 2021. This includes the acquisition of PRYZM at 
                   purchase price. 
                   GBP million                                                   % 
Industrial         115.39                                                      50.29 
Office             40.32                                                       17.57 
Retail -           24.63                                                       10.73 
Warehousing 
Retail - High      32.95                                                       14.36 
Street 
Other              16.18                                                       7.05 
Total              229.47                                                      100.00 
Enquiries 
AEW UK 
Alex Short                     alex.short@eu.aew.com 
                               +44(0) 20 7016 4848 
 
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 477 500 
 
TB Cardew                      AEW@tbcardew.com 
Ed Orlebar                     + 44 (0) 7738 724 630 
Tania Wild                     +44 (0) 7425 536 903 
Lucas Bramwell                 +44 (0) 7939 694 437 
 
Liberum Capital 
Darren Vickers / 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 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 UK Listing 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 EUR77.4bn of assets under management as at 30 September 2021. 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 2021, AEW Group managed EUR36.8bn of real estate assets on behalf of a number of funds and separate accounts with over 440 staff located in 9 offices.

www.aewuk.co.uk

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ISIN:           GB00BWD24154 
Category Code:  MSCL 
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.:   143212 
EQS News ID:    1280902 
 
End of Announcement  EQS News Service 
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February 16, 2022 02:00 ET (07:00 GMT)

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