AEW UK Long Lease REIT PLC AEW Long Lease REIT buys south east petrol station (8471F)
26 February 2018 - 6:00PM
UK Regulatory
TIDMAEWL
RNS Number : 8471F
AEW UK Long Lease REIT PLC
26 February 2018
26 February 2018
AEW UK Long Lease REIT acquires south east petrol filling
station for GBP3.8m
AEW UK Long Lease REIT plc ("the Company") is pleased to
announce the acquisition of Applegreen Petrol Filling Station,
Crawley for GBP3.82m. The acquisition price reflects a net initial
yield of 5.3% and provides the Company with a lease term of 15
years to expiry (no breaks) with three-yearly rental uplifts linked
to RPI, capped at 3.5%.
The asset is situated on the busy Crawley Avenue (A23)
dual-carriageway, one mile to the west of Crawley town centre. The
A23 connects the major towns on the south coast with Crawley and
continues northward to London. The property comprises a modern
Applegreen branded petrol station comprehensively refurbished by
the operator in 2015 and occupying a large site of 1.5 acres. The
facility provides eight filling points as well as parking for 20
cars, a convenience store, Greggs bakery, Subway sandwich shop and
an off-licence.
Alex Short, Director of AEW UK Investment Management LLP, and
Portfolio Manager of the Company said: "The income stream provides
a strong fit with the Company's investment requirements and in
addition is secured against the strong covenant of Applegreen. We
were particularly attracted by its South East location and strong
trading figures. With some uncertainty surrounding the long term
future of the vehicle fuel sales market we are reassured by the
site's diverse use, not solely relying on fuel sales, and also the
operator's proactive approach in having already begun fitting
electric vehicle charging points to a number of their existing
network facilities. The site's large size and strong underlying
residual value also provided comfort."
The transaction increases the total amount invested by AEW UK
Long Lease REIT plc since listing to c GBP90m. In addition to this,
the Manager has a further 2 assets under offer and expects to make
additional announcements in the coming weeks.
AEW UK Long Lease REIT plc raised GBP80.5m from institutional
and retail investors at its IPO in June and at that time it stated
its expectation to substantially invest the net proceeds within
nine months of listing. On the 8 January 2018, the Group announced
that it had entered into a new GBP30 million term loan facility
with Canada Life Investments. The term facility is up to 35% loan
to property value, provided on a portfolio basis.
The Company is targeting an annual dividend of 5.5 pence per
share paid quarterly, once fully invested and levered, with an
ambition to grow in line with UK inflation (RPI or CPI)
thereafter.
The Company entered the REIT regime with effect from 13 October
2017 following the submission of the application to HM Revenue and
Customs.
ENDS
About AEW UK Long Lease REIT
AEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a
sustainable, secure and predictable income return, whilst at least
maintaining capital values in real terms, by investing in a
diversified portfolio of UK properties, with an attractive entry
yield, predominately in alternative and specialist sectors. It will
invest in a diverse range of sectors that are underrepresented in
institutional portfolios including leisure, healthcare, education,
hotels, student accommodation, supported living and automotive. At
its IPO on June 6 2017, AEWL raised GBP80.5m from institutional and
retail investors. At least 85% of the gross passing rent from the
portfolio's leases will contain inflation linked rent reviews, and
average initial unexpired leases in excess of 18 years at the time
of investment.
www.aewukllreit.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.
LEI: 213800MPBIJS12Q88F71
Enquiries
AEW UK
Alex Short alex.short@eu.aew.com
+44(0) 207 016 4880
Laura Elkin laura.elkin@eu.aew.com
+44(0) 207 016 4869
Nicki Gladstone Nicki.Gladstone-ext@eu.aew.com
+44(0) 771 140 1021
Company Secretary aewl-cosec@linkgroup.co.uk
Link Company Matters Limited +44(0) 139 247 7509
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 EUR57bn of assets under management as at 30 September 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 Global Asset Management, one of the
largest asset managers in the world.
As at 31 December 2017, AEW managed EUR27.7bn 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
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