AEW UK REIT PLC Sale of Unit 1, Clarke Road, Milton Keynes (4220T)
March 20 2023 - 2:00AM
UK Regulatory
TIDMAEWU
RNS Number : 4220T
AEW UK REIT PLC
20 March 2023
20 March 2023
AEW UK REIT plc
Sale of Unit 1, Clarke Road, Milton Keynes
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased
to announce that it has completed the sale of its industrial
holding at Clarke Road, Milton Keynes, for GBP2,750,000 (circa
GBP91 per sq ft), reflecting a 6.3% net initial yield (NIY).
The 30,262 sq ft industrial unit was acquired in October 2015
for GBP1,526,000 (circa GBP50 per sq ft), reflecting an 8.3% NIY.
Since acquisition, the property has been re-let to FMG Repair
Services Limited, with a guarantor from Northgate Vehicle Hire, on
a 10-year lease, with a 5-year tenant break option. By securing a
stronger covenant on a longer lease, the sale realises significant
profit, exceeding the 31 December 2022 valuation of GBP2,580,000 by
circa 6.6%, and the price paid at acquisition by circa 80.2%.
After completion of the sale, the Company will have
approximately GBP7.5 million to deploy on an attractive pipeline of
higher yielding assets which will be more accretive to the
Company's earnings.
Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented :
"Clarke Road has performed well, delivering excellent returns to
AEWU shareholders since original investment. The value created
through completion of the new letting presented an opportunity to
crystallise the asset's strong performance, with the intention of
reinvesting the proceeds into higher yielding opportunities and, as
such, we expect to make further purchase announcements in the
coming months."
ENDS
Enquiries
AEW UK
Laura Elkin laura.elkin@eu.aew.com
+44(0) 7917 058 337
Henry Butt henry.butt@eu.aew.com
+44(0) 7920 499 076
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) 7548773155
TB Cardew AEW@tbcardew.com
Ed Orlebar +44 (0) 7738 724 630
Tania Wild +44 (0) 7425 536 903
Henry Crane +44 (0)7918 207157
Liberum Capital
Darren Vickers / Owen Matthews +44 (0) 20 3100 2222
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 Financial
Conduct 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 EUR84.9bn of assets
under management as at 31 December 2022. 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 31
December 2022, AEW Group managed EUR38.5bn of real estate assets on
behalf of a number of funds and separate accounts with over 470
staff located in 10 locations.
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