REG-AEW UK REIT plc AEW UK REIT plc: Acquisition of PRYZM Nightclub, Cardiff

Aew UK ReitAnnouncement

16/02/2022 07:00

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   AEW UK REIT plc (AEWU)
   AEW UK REIT plc: Acquisition of PRYZM Nightclub, Cardiff

   16-Feb-2022 / 07:00 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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   16 February 2022

                                        

                                AEW UK REIT Plc

                    Acquisition of PRYZM Nightclub, Cardiff

                                        

   AEW UK  REIT plc  (LSE:  AEWU) ("AEWU"  or  the "Company") is  pleased  to
   announce the acquisition of the PRYZM Nightclub in Cardiff for a  purchase
   price of £3,625,000 /  £92 per sq  ft. The purchase  price reflects a  net
   initial yield of 8%, with an  anticipated reversionary yield of circa  9%.
   The acquisition  is  accretive  to  EPRA EPS  and,  following  the  recent
   acquisition of Central Six Retail Park in Coventry for £16,411,000,  takes
   AEWU gearing in line with the target of 30-35%.

   The acquisition demonstrates the Manager's view that there continue to  be
   interesting opportunities  to acquire  assets that  provide strong  income
   yields to support the consistent dividend payment. The asset presents  the
   opportunity to drive  income return  through the  term of  the tenancy  to
   reversion.

   The property is located in a strong pitch in Cardiff city centre, in close
   proximity to the Principality Stadium and St David's Shopping Centre,  and
   prominent within the leisure and  late-night district. It provides  39,469
   sq ft of nightclub and bar accommodation. The property is single-let to  a
   subsidiary of Rekom UK (formerly  The Deltic Group), operating as  "PRYZM"
   and "Steinbeck & Shaw", providing over  14 years unexpired term. Rekom  UK
   is one of the  largest specialist late-night operators  in the UK with  46
   clubs and bars across a number of  brands including PRYZM, ATIK and Bar  &
   Beyond. Cardiff  University  and  the  University  of  Wales  are  located
   approximately 300m from  the property, contributing  to the total  student
   population of circa 75,000.

    

   Alex Short, Portfolio Manager, AEW UK REIT plc, commented: "We are pleased
   to have acquired the PRYZM Nightclub  in Cardiff following the removal  of
   Covid  restrictions  in   Wales  permitting  the   reopening  of   leisure
   facilities. It has been purchased for  a price that will deliver a  strong
   initial yield which will be immediately accretive to shareholder  returns,
   and the  tenant is  up to  date with  its rental  commitments despite  the
   disruption to trade caused by the  pandemic. The property is well  located
   and demand for  leisure assets  remains robust  with a  limited number  of
   large capacity venues available. We are  pleased to add this asset to  the
   portfolio and will continue to target acquisitions where we believe values
   offer  the  opportunity  to  deliver   both  strong  income  and   capital
   performance."

    

                        Valuation

   Sector               as provided by Knight Frank as at 31 December 2021.
                        This includes the acquisition of PRYZM at purchase
                        price.
                                            £ million                       %
   Industrial                                  115.39                   50.29
   Office                                       40.32                   17.57
   Retail - Warehousing                         24.63                   10.73
   Retail - High Street                         32.95                   14.36
   Other                                        16.18                    7.05
   Total                                       229.47                  100.00

    

    

   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
   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 €77.4bn of assets under management as at 30 September 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 30 September 2021, AEW Group managed €36.8bn of real  estate
   assets on behalf of a number of funds and separate accounts with over  440
   staff located in 9 offices.

    5 www.aewuk.co.uk

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   ISIN:           GB00BWD24154
   Category Code:  MSCL
   TIDM:           AEWU
   LEI Code:       21380073LDXHV2LP5K50
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   143212
   EQS News ID:    1280902


    
   End of Announcement EQS News Service

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References

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