AEW UK REIT plc (AEWU) 
AEW UK REIT plc: Asset Sale 
 
18-Dec-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
18 December 2020 
**************** 
 
       AEW UK REIT plc (the "Company") 
 
       Asset Sale Announcement 
 
    The Company is pleased to announce that it has unconditionally exchanged 
contracts for the sale of Sandford House, Homer Road, Solihull for the price 
                of GBP10.5 million. 
 
        The sale price crystallises significant profit by exceeding both the 
valuation level immediately prior to the sale by over 9% and the acquisition 
price by 94%. The asset was acquired in August 2015 for GBP5.4 million and has 
          been fully let to the Secretary of State for Communities and Local 
Government since this time producing a net income yield against the purchase 
     price of 9.6%. The Company had invested no further capital in the asset 
               during its hold period. 
 
A new 15-year lease agreement was signed with the tenant in July 2020, which 
  increased the rental income received from the asset by 30%. The lease also 
 provides for five yearly open market rent reviews and a tenant break option 
    at year 10. The tenant intends to carry out a major refurbishment of the 
               property over the coming weeks. 
 
 The sale is due to complete on 1 February 2021 and the Company will receive 
   income from the asset until this date. Subsequent to this, the Investment 
  Manager intends to reinvest sale proceeds on behalf of the Company and has 
               identified an attractive pipeline of suitable assets. 
 
   Commenting on the sale, Alex Short and Laura Elkin, Portfolio Managers of 
 AEW UK REIT said, "The completion of the sale of this property will deliver 
   to the Company an IRR in excess of 20% which, particularly at the current 
    time, highlights the defensive nature of the Company's strategy. Seeking 
      mispriced assets has been a feature of the strategy since IPO and this 
  example demonstrates well how shorter income assets in prime locations can 
               be used to create value for shareholders over the long run." 
 
               For further information, please contact: 
 
                        AEW UK 
                    Alex Short          alex.short@eu.aew.com 
                                          +44(0) 20 7016 4848 
                   Laura Elkin         laura.elkin@eu.aew.com 
                                          +44(0) 20 7016 4869 
               Nicki Gladstone nicki.gladstone-ext@eu.aew.com 
                                          +44(0) 7711 401 021 
             Company Secretary     aewu.cosec@linkgroup.co.uk 
  Link Company Matters Limited            +44(0) 7867 467 624 
 
                     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 
Gillian Martin / 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 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 GBP58m. 
 
 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 [1] [1] 
 
               About AEW UK Investment Management LLP 
 
AEW UK Investment Management LLP employs a well-resourced team comprising 26 
 individuals covering investment, asset management, operations and strategy. 
   It is part of AEW Group, one of the world's largest real estate managers, 
with &euro68.9bn of assets under management as at 30 September 2020. AEW has 
  over 700 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. The Investment Manager is a 
    50:50 joint venture between the principals of the Investment Manager and 
     AEW. In May 2019, AEW UK Investment Management LLP was awarded Property 
         Manager of the Year at the Pensions and Investment Provider Awards. 
 
www.aewuk.co.uk [2] 
 
LEI: 21380073LDXHV2LP5K50 
 
ISIN:           GB00BWD24154 
Category Code:  MSCM 
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.:   89911 
EQS News ID:    1156153 
 
End of Announcement EQS News Service 
 
 
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2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=3dcece580bf8b63de6000dcaabfd645a&application_id=1156153&site_id=vwd&application_name=news

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December 18, 2020 02:00 ET (07:00 GMT)

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