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AEW UK REIT plc AEW UK REIT plc: Asset Sale

Fri 18th December, 2020 7:00am

   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 £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


   For further information, please contact:


   AEW UK                          
   Alex Short                      1
                                  +44(0) 20 7016 4848
   Laura Elkin                     2
                                  +44(0) 20 7016 4869
   Nicki Gladstone                 3
                                  +44(0) 7711 401 021
   Company Secretary               4
   Link Company Matters Limited   +44(0) 7867 467 624
   TB Cardew                       5
   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. 



   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.



   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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