AEW UK Long Lease REIT PLC AEW UK Long Lease REIT buys Chiswick gym for £2.2m (7191K)
12 April 2018 - 7:26PM
UK Regulatory
TIDMAEWL
RNS Number : 7191K
AEW UK Long Lease REIT PLC
12 April 2018
AEW UK Long Lease REIT buys Chiswick gym for GBP2.2m
AEW UK Long Lease REIT ("the Company") is pleased to announce
that it has bought a gymnasium investment in Chiswick, West London,
for GBP2.2m.
The 5,918 sq ft purpose-built gym is situated over two levels
and forms part of a larger residential based development at 500
Chiswick High Road. The asset is held on a virtual freehold basis
and is leased to Snap Fitness for a term of 15 years to expiry with
no breaks and provides 5 yearly inflation linked reviews. The
transaction reflects a net initial yield of 5.5%.
The property benefits from its location in Chiswick, an affluent
London suburb approximately 6 miles west of central London. It is
situated on the corner of Chiswick High Road and Chiswick Road, a 5
minute walk from both Chiswick Park and Gunnersbury stations,
providing access to both the national rail network and London
Underground. The surrounding area comprises a mix of high-end
residential and retail accommodation.
Alex Short, Director of AEW UK Investment Management LLP, and
Portfolio Manager of the Company said: "This new acquisition in an
affluent London location is a fantastic addition to our portfolio,
with its 15 years of guaranteed inflation linked income. The
central Chiswick location should help to drive demand both for the
current use and for alternative uses in the future, therefore
helping to ensure the long term preservation of investor's
capital."
The transaction increases the total amount invested by AEW UK
Long Lease REIT plc since listing to c GBP95m. 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 geared, with an
ambition to grow in line with UK inflation 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.
Enquiries
AEW UK Alex.short@eu.aew.com/laura.elkin@eu.aew.com
Alex Short/Laura Elkin
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 close to 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 investment 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
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