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

Aew UK ReitAnnouncement

12/08/2022 07:00

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RNS Number : 7568V  AEW UK REIT PLC  12 August 2022

 12 August 2022

 

AEW UK REIT Plc

 

Acquisition of high yielding Glasgow leisure asset

 

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that, as anticipated in it's NAV update on the 27(th) July, the sale of its
ownership at Eastpoint Business Park in Oxford has completed on 8th August for
£29,000,000.  The sale of the property at Moorside Road in Swinton for
£1,700,000, completed on 9th August.  Following these disposals, the Company
is pleased to announce that it has unconditionally exchanged contracts to
acquire a high yielding asset located in Glasgow at a price of £2,600,000
reflecting a low capital value of £99 per sq ft and providing an attractive
net initial yield of 7.4%.

The Glasgow asset comprises a solus leisure and retail warehousing unit let to
JD Sports Gym Ltd, which operates 74 gyms in the UK and is a subsidiary of JD
Sports Fashion Plc. It is located fronting the A81 Craigmont Drive,
approximately 2.5 miles north-west of Glasgow city centre. The site also
contains a vacant plot of land which may be suitable for redevelopment over
the medium term, subject to planning.

The lease provides an unexpired lease term of 10.6 years, benefitting from
five-yearly upward-only reviews. The sale is due to complete in the week
commencing 15 August.

 

Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT
said, "With the completion of two major sales this month, we are very pleased
to have exchanged this acquisition which will provide an attractive income
stream for the portfolio. The asset, located in a prominent position within a
major UK city, has the potential for asset management to add further value
over the longer-term. We have been actively seeking value assets such as this
and are pleased that all incoming capital has now been committed to purchases
that are under exclusivity. We expect to make further purchase announcements
in this respect in due course".

 

ENDS

 

 Enquiries
 AEW UK
 Laura Elkin                     laura.elkin@eu.aew.com (mailto:laura.elkin@eu.aew.com)

                                 +44(0) 20 7016 4869
 Henry Butt                      henry.butt@eu.aew.com (mailto:henry.butt@eu.aew.com)

                                 +44(0) 20 7016 4869
 Nicki Gladstone                 nicki.gladstone-ext@eu.aew.com (mailto:nicki.gladstone-ext@eu.aew.com)
                                 +44(0) 7711 401 021
 Company Secretary
 Link Company Matters Limited    aewu.cosec@linkgroup.co.uk
                                 +44(0) 1392 477 500

 TB Cardew                       AEW@tbcardew.com (mailto:AEW@tbcardew.com)
 Ed Orlebar                      +44 (0) 7738 724 630

 Tania Wild                      +44 (0) 7425 536 903

 Liberum Capital
 Darren Vickers / 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 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 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 €85.2bn of assets under management as at 31 March 2022. 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
March 2022, AEW Group managed €39.5bn of real estate assets on behalf of a
number of funds and separate accounts with over 470 staff located in 12
locations.

 

www.aewuk.co.uk (http://www.aewuk.co.uk/)

 

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