REG-AEW UK REIT plc AEW UK REIT plc: Acquisition of Retail Park

Aew UK ReitAnnouncement

05/05/2021 07:05

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   AEW UK REIT plc (AEWU)
   AEW UK REIT plc: Acquisition of Retail Park

   05-May-2021 / 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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   5 May 2021

                                        

                                AEW UK REIT Plc

                                        

                           Acquisition of Retail Park

                                        

   AEW UK REIT plc  (LSE: AEWU) (the "Company") is  pleased to announce  that
   it has acquired the 5.65 acre Arrow Point Retail Park in Shrewsbury for  a
   purchase price of £8.35m. The established retail park is located on a busy
   commercial estate and  is fully  let. The  purchase price  reflects a  low
   capital value of £88 per square foot (£1.48m per acre). 

    

   The estate provides a  net initial yield of  8.7%, with low passing  rents
   compared to competing locations, while being underpinned by industrial and
   trade rents.

    

   Arrow Point  Retail  Park comprises  a  modern purpose-built  retail  park
   constructed in 2007, arranged across 9 units in two terraces with 176  car
   parking spaces to the front. The retail park is prominently located within
   the main retail warehouse provision of Shrewsbury, approximately 2.5 miles
   north east of the town  centre, tenants include British Heart  Foundation,
   Poundstretcher  and  Charlie's  Stores  and  neighbours  retail  occupiers
   including Matalan and B&M Home Store.

    

   Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are pleased  to
   have acquired the Arrow  Point Retail Park. This  is an excellent fit  for
   our portfolio and an  excellent new contributor  to AEWU's income  stream,
   putting to use the profit  from the sale of  the Solihull office asset  in
   February this year. Retail remains  a small percentage of the  portfolio's
   composition and, while  we continue to  take a cautious  approach to  this
   sector, the tenant profile of the site is strong and we are confident that
   we can manage the assets to  drive value for shareholders over the  medium
   to long-term."

   Following completion  of  the  above  purchase,  the  Company  holds  cash
   of c. £8 million and has c. £15 million of its loan facility available  to
   draw (up  to the  maximum 35%  Loan  to NAV  at drawdown).  The  Company's
   portfolio exposure is broken down by sector as follows:

   Sector       Valuation at 31 March 2021 (including Arrow Point at purchase
                                                                        date)
                                       £ million                            %
   Industrial                              108.8                         58.1
   Office                                   36.8                         19.6
   Retail                                   29.2                         15.6
   Other                                    12.6                          6.7
   Total                                   187.4                        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                 
   Gillian Martin / 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 €69.8bn of assets under management as at 31 December  2020.
   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 2020,  AEW Group managed €34.6bn 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
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   103000
   EQS News ID:    1192499


    
   End of Announcement EQS News Service

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References

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