AEW UK REIT plc: Acquisition of PRYZM Nightclub, Cardiff (1280902)
February 16 2022 - 01:00AM
UK Regulatory
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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