REG-AEW UK REIT plc AEW UK REIT plc: Asset Sale
18/12/2020 07:00
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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.
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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 £10.5 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 £5.4
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 1 alex.short@eu.aew.com
+44(0) 20 7016 4848
Laura Elkin 2 laura.elkin@eu.aew.com
+44(0) 20 7016 4869
Nicki Gladstone 3 nicki.gladstone-ext@eu.aew.com
+44(0) 7711 401 021
Company Secretary 4 aewu.cosec@linkgroup.co.uk
Link Company Matters Limited +44(0) 7867 467 624
TB Cardew 5 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 £15 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 £100.5m. Since IPO it has raised a further £58m.
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.
6 www.aewukreit.com
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 €68.9bn 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.
7 www.aewuk.co.uk
LEI: 21380073LDXHV2LP5K50
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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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References
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1. mailto:alex.short@eu.aew.com
2. mailto:laura.elkin@eu.aew.com
3. mailto:nicki.gladstone-ext@eu.aew.com
4. mailto:aewu.cosec@linkgroup.co.uk
5. mailto:aew@tbcardew.com
6. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9220892e63355ca6947a3a3423a3bac8&application_id=1156153&site_id=reuters8&application_name=news
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