REG - AEW UK REIT PLC - Acquisition of high yielding mixed-use office

Aew UK ReitAnnouncement

08/09/2023 07:00

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RNS Number : 7827L  AEW UK REIT PLC  08 September 2023

08 September 2023

 

AEW UK REIT plc

 

Acquisition of high yielding mixed-use office in Bath

 

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 Bath city
centre for £11,500,000, reflecting an attractive net initial yield of 8.0%
and a capital value of £223 per sq ft. Following this acquisition, the
Company is close to full deployment, with remaining cash available to invest
of circa £3m.

 

The property comprises a rare freehold island site totalling circa 0.4 acres
and is located immediately adjacent to the South Gate Shopping Centre which
forms part of the city's core retail provision. Bath Spa Train Station is less
than a five minute walk from the property, with other key tourist attractions
such as Bath Cathedral, the Roman Baths and Pulteney Bridge within a short
distance.

The 51,632 sq ft asset is multi-let to five tenants across office and retail
accommodation. The majority of the building is let to four office tenants at a
low average passing rent of circa £22 per sq ft. Income levels are expected
to improve via rent reviews in the short-term and through lease renewals and
re-lettings over the medium-term. Light refurbishment may also be considered
in order to fully capitalise on the building's prime location and prominence.
A vacant retail unit, fronting Philip Street and Ham Gardens, is currently
under offer to an established local retailer. We expect market conditions to
remain favourable in this location given the low level of available and
consented supply, coupled with strong demand for well-specified and
well-located accommodation.

 

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 and
brings the REIT one step closer to full deployment, with just £3m left to
invest. Completion of the acquisition continues the strategic reinvestment of
capital generated from recent sales into higher yielding assets in core urban
locations."

 

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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