AEW UK REIT PLC Acquisition of Logistics Warehouse in Bradford (4713Q)
30 November 2016 - 6:00PM
UK Regulatory
TIDMAEWU
RNS Number : 4713Q
AEW UK REIT PLC
30 November 2016
30 November 2016
AEW UK REIT plc
AEW UK REIT ACQUIRES LOGISTICS WAREHOUSE IN BRADFORD
AEW UK REIT plc (LSE: AEWU) (the "Company"), which owns a
diversified portfolio of 28 regional UK commercial property assets,
is pleased to announce the acquisition of a c. 144,000 sq ft
logistics warehouse in Bradford for GBP4.95 million, reflecting a
Net Initial Yield of 8.1%, reversionary yield of 8.9% and a capital
value of GBP34 per sq ft.
The warehouse, which is located on the established Euroway
Trading Estate in Bradford, is let to Advanced Supply Chain on an
eight year lease, at a low passing rent of GBP2.98 per sq ft,
providing opportunities for future income growth. The site is
strategically located near Junction 2 of the M606 and is close to
the major conurbations of both Leeds (17km) and Manchester (60km),
while also providing good access to the M1 servicing Birmingham and
London, as well as the A1 north. A number of distribution operators
are located on the Euroway Estate, highlighting the strength of the
location, including Marks and Spencer, whose 1.1 million sq ft
regional distribution warehouse facility is located directly
adjacent to the newly acquired asset.
Commenting on the deal, Alex Short, REIT Portfolio Manager at
AEW UK Investment Management LLP, said, "The acquisition of this
well located logistics asset, on an attractive yield, is
underpinned by the rapid growth we are seeing in online retail,
which is leading to an increased occupier demand for logistics
warehousing. The current low level of rent offers significant
upside potential and we believe that that the acquisition pricing
is well supported by the asset's underlying vacant possession
value, while fitting with our stated strategy of acquiring
higher-yielding, income producing assets that offer asset
management and rental growth opportunities."
Following the acquisition, the Company has invested a total of
GBP128 million across 28 regional commercial property assets and
has a GBP9.33 million investment in AEW UK's Core Property
Fund.
Enquiries
AEW UK
Alex Short alex.short@aeweurope.com
+44(0) 20 7016 4880
Nicki Gladstone nicki.gladstone-ext@aeweurope.com
+44(0) 20 7016 4880
Company Secretary
Benjamin Hanley, Capita Company Benjamin.Hanley@capita.co.uk
Secretarial Services
T: 01392 477 653
FTI Consulting
Richard Sunderland, Claire aewuk@fticonsulting.com
Turvey, Richard Gotla
T: 020 3727 1000
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 GBP10 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 GBP23m.
Since its IPO in May 2015, AEWU has invested a total of GBP128
million across 28 regional commercial property assets and has a
GBP9.33 million investment in AEW UK's Core Property Fund. It 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. Whilst
occupational demand in strategic locations remains, securing
tenants on shorter leases allows AEWU to crystallise value through
rent reviews and lease re--gears.
AEWU is currently paying a dividend of 8p per share p.a. and
targets a total annual return, over the medium term, in excess of
12% on the IPO issue price, net of all fees.
Real estate investment specialist AEW UK Investment Management
LLP is a joint venture between the management team, which together
has an average of 25 years of real estate experience, and AEW
Europe, which has EUR19.1 billion of real estate assets under
management. AEW UK Investment Management LLP has a strong and
expert asset management team, with a proven record of identifying
and delivering value from real estate assets across all
sectors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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