AEW UK REIT PLC AEW UK REIT acquires properties totalling £22.5m (8911I)
26 March 2018 - 7:14PM
UK Regulatory
TIDMAEWU
RNS Number : 8911I
AEW UK REIT PLC
26 March 2018
AEW UK REIT acquires properties in Dagenham and Wrexham for
GBP22.5m
AEW UK REIT is pleased to announce that it has acquired the
eastern section of London East Leisure Park, Cook Road, Dagenham
and an industrial unit let to Plastipak UK Limited on Gresford
Industrial Estate, Wrexham for a combined price of GBP22.5m.
London East Leisure Park is a purpose built leisure destination
totalling 149,132 sq ft. The portion bought by AEW UK REIT
comprises 72,245 sq ft and was acquired for GBP11.5m. The property
currently houses Mecca Bingo, McDonalds and Hollywood Bowl and
provides a net initial yield of 8% with a WAULT of 12.8 years. A
major attraction of the park is its location, 11 miles east of
Central London and being highly accessible both via public
transport but also with close links to the A13 and M25. Dagenham is
an area due to go through major regeneration over the next 10 years
with the Council recently setting out plans for the development of
thousands of new homes as well as the first film studio to be built
in London for 25 years. The surrounding area comprises a mix of
retail, industrial and residential property.
The Wrexham property, a 279,541 sq ft industrial unit leased to
Plastikpak UK Limited, comprises 3 units within a self-contained
and secure site and was acquired for GBP10.0m. The asset benefits
from its location in Gresford Industrial Estate, approximately 2
miles north of Wrexham town centre, with key motorway links across
the north west via the A483. A key feature of the building is its
large power supply at 18 megawatts which is rarely seen in
buildings of this nature and could therefore be attractive to
future tenants. The asset provides a net initial yield of 8.3% and
a WAULT of 14 years, with a fixed rental uplift due in 2022.
In order to complete the aforementioned acquisitions the Company
has drawn GBP10 million from its existing loan facility with RBS
International Limited which matures in October 2020. The facility
amount has now been increased to enable the Company to utilise the
facility up to GBP60 million. The Company will continue to target
an amount equivalent to 25% of the Gross Asset Value as measured at
drawdown, which can be increased to a maximum of 35% of Net Asset
Value ahead of an equity fundraising or asset disposal.
Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are
very pleased to announce the above acquisitions which now bring the
Company's debt level back in line with its long term loan to value
target of 25%. The Company has now completed four acquisitions so
far this year totalling c GBP39m providing a combined net initial
yield of 8.6% which is supportive of our target annual dividend of
8p per share. We are encouraged by the strength of our current
pipeline and are confident that the buying opportunities that the
Company has been taking advantage of since IPO persist."
ENDS
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 GBP51m.
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
About AEW UK Investment Management LLP
The Investment Manager AEW UK Investment Management LLP is a
50:50 joint venture between the principals of the Investment
Manager and AEW. It employs a well-resourced team comprising 25
individuals covering investment, asset management, operations and
strategy. It is part of AEW Group, one of the world's largest real
estate managers, with EUR58.5 billion of assets under management as
at 31 December 2017. 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 2017, AEW
Group managed EUR28.4 billion in value in properties of all types
located in 15 countries, with close to 600 staff.
Enquiries
AEW UK
Richard Tanner richard.tanner@eu.aew.com
Nicki Gladstone Nicki.Gladstone-ext@eu.aew.com
+44(0) 771 140 1021
TB Cardew aew@tbcardew.com
Ed Orlebar +44(0) 7738 724 630
Tom Allison +44(0) 7789 998 020
Lucy Featherstone +44(0) 7789 374 663
About AEW Europe
AEW is one of the world's largest real estate asset managers,
with EUR58.5bn of assets under management as at 31 December 2017.
AEW has over 600 employees, with its main offices located in
Boston, London, Paris and Hong Kong and offers a wide range of real
estate investment products including comingled funds, separate
accounts and securities mandates across the full spectrum of
investment strategies. AEW represents the real estate asset
management platform of Natixis Investment Managers, one of the
largest asset managers in the world.
As at 31 December 2017, AEW managed EUR28.4bn of real estate
assets in Europe on behalf of a number of funds and separate
accounts. AEW has close to 400 employees based in 10 offices across
Europe and has a long track record of successfully implementing
core, value-add and opportunistic investment strategies on behalf
of its clients. In the last five years, AEW has invested and
divested a total volume of over EUR17.5bn of real estate across
European markets.
www.aeweurope.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEDSAMFASEFD
(END) Dow Jones Newswires
March 26, 2018 04:14 ET (08:14 GMT)
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From Apr 2024 to May 2024
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From May 2023 to May 2024