REG - AEW UK REIT PLC - Acquisition of high yielding mixed use asset, York

Aew UK ReitAnnouncement

19/07/2023 07:00

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RNS Number : 4243G  AEW UK REIT PLC  19 July 2023

19 July 2023

 

AEW UK REIT plc

 

Acquisition of high yielding mixed use asset in York

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that it has completed the purchase of a freehold, mixed-use asset in York city
centre for £10,020,000, reflecting an attractive net initial yield of 9.3%.

The 99,769 sq ft asset is multi-let to five tenants. 75% of the income is
received from National Car Parks Ltd ("NCP"), who have occupied the 297-space
car park since 2005 and have a further nine years remaining on their lease.
The lease benefits from a 2027 rent review which will increase rent payable in
line with the Retail Price Index, uncapped, resulting in a forecast
reversionary yield in excess of 10%. NCP is one of the UK's largest car park
operators with an estate of approximately 189,000 spaces over 642 sites. The
company is owned by Park24, a Japanese based multi-national parking operator,
and the Development Bank of Japan. Another four tenants occupy the ground and
first floor retail and office accommodation fronting onto George Hudson
Street.

 

The site totals 0.8 acres and is located inside the York City Wall, bordering
the historic centre of the city, within the "Micklegate Quarter". It is
situated in a prominent corner position on George Hudson Street and Tanner
Row, within a 10-minute walk of key visitor attractions, including York
Minster, the Yorkshire Museum and the York Dungeon. York's key retail
provisions at Coppergate Shopping Centre, Coney Street, Davygate and
Parliament Street are all within a 7-minute walk.

Following purchase of York, cash available for deployment in to high yielding
pipeline assets is circa £15.0m.

Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT
said, "We are pleased to have purchased this very well-located mixed-use
asset at a day one yield that will be accretive to the Company's earnings. Our
due diligence has shown that NCP trades well from the location and we expect
this to continue given the popularity of York as a destination. Completion of
the acquisition marks the strategic reinvestment into higher yielding assets
of capital generated from recent sales. We continue to analyse an interesting
pipeline of potential acquisitions and expect to make further purchase
announcements in due course, which will bring us closer to our short-term
target of full deployment of capital."

 

 

ENDS

 

 Enquiries
 AEW UK
 Laura Elkin                     laura.elkin@eu.aew.com (mailto:laura.elkin@eu.aew.com)
                                 +44(0) 7917 058 337
 Henry Butt                      henry.butt@eu.aew.com (mailto:henry.butt@eu.aew.com)
                                 +44(0) 7920 499 076
 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) 7548773155

 TB Cardew                       AEW@tbcardew.com (mailto:AEW@tbcardew.com)
 Ed Orlebar                      +44 (0) 7738 724 630
 Tania Wild                      +44 (0) 7425 536 903
 Henry Crane                     +44 (0) 7918 207 157

 Liberum Capital
 Darren Vickers / Owen Matthews  +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 UK Investment Management LLP

AEW UK Investment Management LLP employs a well-resourced team comprising 29
individuals covering investment, asset management, operations and strategy. It
is part of AEW Group, one of the world's largest real estate managers,
with €84.9bn of assets under management as at 31 December 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
December 2022, AEW Group managed €38.5bn of real estate assets on behalf
of a number of funds and separate accounts with over 470 staff located in 10
locations.

 

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