REG - AEW UK REIT PLC - Acquisition of high-yielding asset

Aew UK ReitAnnouncement

14/03/2025 07:00

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RNS Number : 6295A  AEW UK REIT PLC  14 March 2025

14 March 2025

 

AEW UK REIT plc

 

Acquisition of high-yielding asset in affluent town

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that it has completed the purchase of a freehold, high-street retail asset at
13/13A, 114-119, 121-123 Bancroft and 3-4 Portmill Lane (the "Property") in
the affluent commuter town of Hitchin for £10,000,000. The purchase price
reflects an attractive net initial yield of 8.31% and a capital value of £213
per sq. ft.

 

The Property, located in the centre of Hitchin's high-street retail pitch,
provides 46,905 sq. ft. of space across 12 retail units and a standalone
office building, as well as car parking and service yards.  The retail
elements of the Property are fully let to a strong line up of 12 tenants, with
recent leasing activity evidencing the strength of the location. Major tenants
include Marks & Spencer plc, Next Holdings Ltd, Vodafone Ltd, The White
Company and Holland & Barrett. The vacant office element to the rear
provides various asset management options in the short-to-medium term,
including new lettings or residential conversion.

Hitchin is a busy market town located in Hertfordshire with an affluent
catchment. The town is served by rail connections to both London and
Cambridge, underpinning its attractiveness as a commuter location.

The acquisition demonstrates the Company's swift and ongoing redeployment of
sale proceeds from the recent disposal of Central Six Retail Park in Coventry,
with a significant amount of the remaining proceeds also under exclusive
negotiation. In considering the re-deployment of the proceeds from Central
Six, the Company has identified an attractive pipeline of investments
available for purchase in the current market and is considering available
growth opportunities for further earnings accretive acquisitions."

 

Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT
said: "We are delighted to have purchased this well-located asset at a day
one yield that will enhance the Company's earnings. Completing this
acquisition marks a significant milestone in our strategy to reinvest capital
generated from the recent successful sale of our retail park in Coventry into
higher-yielding and value-add assets. We continue to actively monitor a
pipeline of attractive potential investments, and believe the Company is well
positioned to focus on the growth of the portfolio should the right earnings
accretive opportunities arise."

 

 

ENDS

 

 AEW UK
 Laura Elkin                        Laura.elkin@eu.aew.com (mailto:Laura.elkin@eu.aew.com)
 Henry Butt                         henry.butt@eu.aew.com (mailto:henry.butt@eu.aew.com)
 AEW Investor Relations             investor_relations@eu.aew.com

 Company Secretary
 MUFG Corporate Governance Limited  aewu.cosec@cm.mpms.mufg.com

 Cardew Group                       AEW@cardewgroup.com (mailto:AEW@cardewgroup.com)

 Tania Wild                         +44 (0) 7425 536 903

 Henry Crane                        +44 (0) 7918 207 157

 Panmure Liberum
 Darren Vickers                     +44 (0) 20 3100 2222

 

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 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 income streams.  AEWU is currently paying an annualised dividend
of 8p per share.

The Company was listed on the Official List of the Financial Conduct Authority
and admitted to trading on the Main Market of the London Stock Exchange on 12
May 2015. www.aewukreit.com (http://www.aewukreit.com/)

LEI: 21380073LDXHV2LP5K50

About AEW

AEW is one of the world's largest real estate asset managers,
with €79.1bn of assets under management as at 31 December 2024. AEW has
over 860 employees, with its main offices located
in Boston, London, Paris and Singapore 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 asset managers in the world.

As at 31 December 2024, AEW managed €36.8bn of real estate assets
in Europe on behalf of a number of strategies and separate accounts. AEW has
over 510 employees based in 11 offices across Europe and has a long track
record of 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 €14.9bn of real estate across European markets.

www.aew.com (http://www.aew.com/)

AEW UK Investment Management LLP is the Investment Manager.  AEW is a group
of companies which includes AEW Europe SA and its subsidiaries as well as
affiliated company AEW Capital Management, L.P. in North America and its
subsidiaries. AEW Europe SAS, together with its subsidiaries
AEW UK Investment Management LLP, AEW S.à.r.l., AEW Invest GmbH and AEW
SAS, is a European real estate investment manager with headquarter offices
in Paris and London. AEW Europe SA and AEW Capital Management, L.P. are
owned by Natixis Investment Managers. Natixis Investment Managers is an
international asset management group based in Paris, France, that is
principally owned by Natixis, a French investment banking and financial
services firm. Natixis is principally owned by BPCE, France's second largest
banking group.

 

 

 

Disclaimer

This communication cannot be relied upon as the basis on which to make a
decision to invest in AEWU. This communication does not constitute an
invitation or inducement to subscribe to any particular investment. Issued by
AEW UK Investment Management LLP, 8 Bishopsgate, London, EC2N 4BQ.

Company number: OC367686 England. Authorised and regulated by the Financial
Conduct Authority.

 

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