REG-AEW UK REIT plc AEW UK REIT plc: Acquisition of prime retail site in Bristol city centre

Aew UK ReitAnnouncement

23/06/2021 08:15

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   AEW UK REIT plc (AEWU)
   AEW UK REIT plc: Acquisition of prime retail site in Bristol city centre

   23-Jun-2021 / 08:13 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   23 June 2021

                                        

                                AEW UK REIT Plc

                                        

            Acquisition of prime retail site in Bristol city centre

                                        

   AEW UK REIT  plc (LSE: AEWU)  (the "Company") is  pleased to announce  the
   acquisition of a prime retail site in the heart of Bristol city centre for
   a purchase  price  of £10.19  million,  equating to  £161  per sq  ft  and
   reflecting a net initial yield of 8%.

    

   15-33 Union Street occupies a  prominent location in Bristol city  centre,
   opposite The Galleries  Shopping Centre and  near Cabot Circus,  Bristol's
   premier  retail   destination.  Located   on  a   busy  thoroughfare   for
   pedestrians, the 63,125 sq  ft property experiences  high footfall and  is
   ideally suited for  retail or leisure  use. The location  of the site  has
   also been identified as a major regeneration area.

    

   Constructed in 2001, the property  currently comprises five purpose  built
   split-level retail or leisure units over  four floors with road access  to
   both Union Street and Fairfax  Street. Four of the  five units are let  to
   three household names and a successful local retailer. The remaining  unit
   is currently vacant, with the vendor providing a 12 month rent  guarantee.
   We are currently in discussions with a  number of parties who are keen  to
   occupy this space.      

   Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are pleased  to
   have acquired this  prominent and busy  city centre property.  This is  an
   excellent fit for our portfolio and will immediately contribute to  AEWU's
   income stream. The site offers the  opportunity to benefit from the  major
   regeneration currently underway in Bristol city centre over the long-term.
   While we  have made  two  recent investments  in  the retail  sector,  our
   overall  exposure  remains  relatively  low  compared  to  industrial.  We
   continue to take a cautious approach  to retail, judging each site on  its
   specific merits."

   Following completion  of the  above purchase,  the Company  holds c.  £6.7
   million of cash and has available c. £4.5 million of its debt facility  up
   to the drawdown limit of 35% Loan to NAV.

   The Company's portfolio exposure is broken down by sector as follows:

   Sector     Valuation (as provided by Knight Frank as at 31 March 2021 plus
                                   subsequent acquisitions at purchase price)
                                      £ million                             %
   Industrial                             108.8                          55.1
   Retail                                  39.3                          19.9
   Office                                  36.8                          18.6
   Other                                   12.6                           6.4
   Total                                  197.5                         100.0

                                        

                                        

    

   Enquiries                       
   AEW UK                          
   Alex Short                      1 alex.short@eu.aew.com
                                  +44(0) 20 7016 4848
                                   
   Nicki Gladstone                 2 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                       3 AEW@tbcardew.com
   Ed Orlebar                     +44 (0) 7738 724 630

   Tania Wild                     +44 (0) 7425 536 903
   Lucas Bramwell                 +44 (0) 7939 694 437
                                   
   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 UK Listing  Authority
   and admitted to trading on the Main Market of the London Stock Exchange on
   12 May 2015.  4 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 €72.8bn of assets under management as at 31 March 2021. 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 2021, AEW Group managed €35.7bn of real estate assets on behalf of a
   number of funds  and separate accounts  with over 420  staff located in  9
   offices. 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.

    

    5 www.aewuk.co.uk

    

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   ISIN:          GB00BWD24154
   Category Code: MSCL
   TIDM:          AEWU
   LEI Code:      21380073LDXHV2LP5K50
   Sequence No.:  112922
   EQS News ID:   1210822


    
   End of Announcement EQS News Service

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References

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