REG-AEW UK REIT plc AEW UK REIT plc: AEW UK REIT acquires Leeds industrial estate

Aew UK ReitAnnouncement

15/02/2019 10:05

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   AEW UK REIT plc (AEWU)
   AEW UK REIT plc: AEW UK REIT acquires Leeds industrial estate

   15-Feb-2019 / 10:04 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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   15 February 2019

             AEW UK REIT acquires Leeds industrial estate for £7.3m

   AEW UK  REIT  plc ("the  Company")  is pleased  to  announce that  it  has
   acquired an industrial asset,  Lockwood Court, Parkside Industrial  Estate
   in Leeds for  a gross purchase  price of £7.3m,  reflecting an  attractive
   initial yield of 7.7%.

   The 187,794 sq ft  warehouse asset is  fully let to  LWS Yorkshire Ltd,  a
   logistics and storage provider  for Harrogate Spring Water,  on a 10  year
   lease from October 2018.  The lease provides a  low passing rent of  £3.22
   per sq  ft which,  together with  tight supply,  forms a  strong base  for
   future potential rental growth.

   Located two miles south of Leeds City  Centre and close to J25 of the  M62
   and J40  of  the M1,  Parkside  Industrial Estate  is  a  well-established
   industrial and commercial area with  a history of attracting regional  and
   national occupiers.

   Alex Short,  Portfolio  Manager,  AEW UK  REIT,  commented:  "This  latest
   acquisition is a very attractive addition to the portfolio due to both its
   high income return and potential for value growth in the future.  Offering
   a low passing  rent and  located in  an area  of high  tenant demand  with
   limited property  supply,  the  asset fundamentals  mirror  those  of  the
   portfolio's strongest  performing industrials  from which  we saw  capital
   value growth  of  2.8%  during  Q4  last  year  alone.  These  low  rented
   industrial assets now make up over 45% of the portfolios holdings."

   Following the acquisition  of this property  the Company's borrowings  now
   show a gross  loan to value  of 25.0%. The  Company's holdings comprise  a
   diversified portfolio of  regional UK commercial  property assets  showing
   exposure to the major property sectors  in line with the weightings  shown
   below.  As per the Company's Investment Restrictions, maximum exposure  to
   any of the below sectors at the time of purchase is 50%.

   Industrial 47.1%
   Office     21.7%
   Retail     16.0%
   Other      15.2%

    

                                      ENDS

                                        

   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  £10 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 the income stream. 

    1 www.aewukreit.com

    

   About AEW UK Investment Management LLP

   AEW UK Investment Management LLP employs a well-resourced team  comprising
   23 individuals  covering  investment,  asset  management,  operations  and
   strategy. It is part of AEW Group, one of the world's largest real  estate
   managers, with just  over EUR63.5bn of  assets under management  as at  30
   September 2018.  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 2018, AEW Group managed nearly
   EUR30bn in  value in  properties of  all types,  with close  to 400  staff
   located in 9  offices. The  Investment Manager  is a  50:50 joint  venture
   between the principals of the Investment Manager and AEW.

    

    

   AEW UK Enquiries

   Alex Short       2 alex.short@eu.aew.com

   Laura Elkin       3 laura.elkin@eu.aew.com

    

   Media Enquiries

   Nicki Gladstone       4 nicki.gladstone-ext@eu.aew.com

          +44 (0)7711 401021

    

   TB Cardew (Financial PR advisor)     5 aew@tbcardew.com

   Ed Orlebar       +44 (0) 7738 724630

   Emma Crawshaw     +44 (0) 7971 468 308

   Lucy Featherstone     +44 (0) 7789 374663

    

    

    

   About AEW

   AEW is  one  of the  world's  largest  real estate  asset  managers,  with
   EUR63.5bn of assets under management as at 30 September 2018. AEW has over
   600 employees, with its main offices located in Boston, London, Paris  and
   Hong Kong  and offers  a wide  range of  real estate  investment  products
   including comingled  funds,  separate  accounts  and  securities  mandates
   across the full spectrum of investment strategies. AEW represents the real
   estate asset management  platform of Natixis  Investment Managers, one  of
   the largest asset managers in the world.

   As at 30 September 2018, AEW managed almost EUR30bn of real estate  assets
   in Europe on behalf of  a number of funds  and separate accounts. AEW  has
   close to 400 employees  based in 9  offices across Europe  and has a  long
   track  record   of   successfully   implementing   Core,   Value-Add   and
   Opportunistic investment strategies on behalf of its clients. In the  last
   five years, AEW has invested and  divested a total volume of over  EUR20bn
   of real estate across European markets.

    

   Disclaimer

   This communication cannot be relied upon as  the basis on which to make  a
   decision to invest in the Company. This communication does not  constitute
   an invitation or inducement to subscribe to any particular investment.

    

    

    

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   ISIN:           GB00BWD24154
   Category Code:  ACQ
   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.:   7509
   EQS News ID:    776471


    
   End of Announcement EQS News Service

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References

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   2. mailto:alex.short@eu.aew.com
   3. mailto:laura.elkin@eu.aew.com
   4. mailto:nicki.gladstone-ext@eu.aew.com
   5. mailto:aew@tbcardew.com


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