REG - AEW UK REIT PLC - Sale of high-street retail asset in Portsmouth

Aew UK ReitAnnouncement

09/10/2023 07:00

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RNS Number : 0325P  AEW UK REIT PLC  09 October 2023

09 October 2023

 

AEW UK REIT plc

 

Sale of high-street retail asset in Portsmouth

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that it has completed the sale of its freehold high-street retail holding at
208-220 Commercial Road and 7-13 Crasswell Street, Portsmouth,
for £3,900,000, reflecting a net initial yield of 9.9% and a capital value
of £251 per sq ft. A sale at this price reflects a circa 22% premium to the
30 June 2023 valuation of £3,200,000.

 

Following the completion of two new lettings to Kokoro and Specsavers earlier
this year, the property is now fully let. This, coupled with the risk of the
main tenant, Nationwide Building Society ("Nationwide"), being significantly
overrented, prompted the decision to sell. The value of the asset is likely to
deteriorate as Nationwide's lease becomes shorter, with the threat of the
tenant leaving on expiry in 2029 creating the possibility of a long-term void.
 

 

Commenting on the sale, Laura Elkin, Portfolio Manager of AEW UK REIT said:
"We are pleased to have sold this holding for a healthy premium to valuation,
having completed the asset management strategy, and therefore maximised value.
Going forward, the asset presents a potential risk to the Company's
shareholders, which further justifies a sale at this point in time. The
Company's focus for the deployment of capital continues to be on the
consideration of further accretive investment opportunities, alongside
re-investment into the existing portfolio where capex is needed in order to
drive future performance gains".

 

 

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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