REG - AEW UK REIT PLC - Sale of Unit 1, Clarke Road, Milton Keynes

Aew UK ReitAnnouncement

20/03/2023 07:00

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RNS Number : 4220T  AEW UK REIT PLC  20 March 2023

20 March 2023

 

AEW UK REIT plc

 

Sale of Unit 1, Clarke Road, Milton Keynes

 

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that it has completed the sale of its industrial holding at Clarke Road,
Milton Keynes, for £2,750,000 (circa £91 per sq ft), reflecting a 6.3% net
initial yield (NIY).

The 30,262 sq ft industrial unit was acquired in October 2015 for £1,526,000
(circa £50 per sq ft), reflecting an 8.3% NIY. Since acquisition, the
property has been re-let to FMG Repair Services Limited, with a guarantor from
Northgate Vehicle Hire, on a 10-year lease, with a 5-year tenant break option.
By securing a stronger covenant on a longer lease, the sale realises
significant profit, exceeding the 31 December 2022 valuation of £2,580,000 by
circa 6.6%, and the price paid at acquisition by circa 80.2%.

After completion of the sale, the Company will have approximately £7.5
million to deploy on an attractive pipeline of higher yielding assets which
will be more accretive to the Company's earnings.

Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented: "Clarke Road
has performed well, delivering excellent returns to AEWU shareholders since
original investment. The value created through completion of the new letting
presented an opportunity to crystallise the asset's strong performance, with
the intention of reinvesting the proceeds into higher yielding opportunities
and, as such, we expect to make further purchase announcements in the coming
months."

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 207157

 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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