REG - Alternative Inc REIT - Acquisition of a Training College in Tring

Alternative Income REITAnnouncement

03/12/2024 07:00

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RNS Number : 4925O  Alternative Income REIT PLC  03 December 2024

3 December 2024

Alternative Income REIT PLC

("AIRE", the "Company" or the "Group")

 

ACQUISITION OF A TRAINING COLLEGE IN THE AFFLUENT HERTFORDSHIRE RURAL LOCATION
OF TRING, LET TO CHAMPNEYS ON A LONG LEASE WITH INDEXED-LINKED RENTS

 

The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the
owner of a diversified portfolio of UK commercial property assets
predominantly let on long leases with index-linked rent reviews, is pleased to
announce that the Company has completed the acquisition of the Champneys
Beauty School, part of the Champneys Tring Spa Resort in Wigginton, Tring (the
"Asset") for £2.5 million (net of acquisition costs to the Company). The
price reflects a net initial yield of 6.5% and the Asset has been acquired
with a weighted unexpired lease term of 14.9 years. The acquisition reinvests
the remainder of the net proceeds from the Group's last property disposal.

 

The property is fully let to Champneys Tring Limited ("Champneys"), the beauty
and health brand and benefits from a parkland vista within the rural estate of
the Champneys Tring Spa Resort. Champneys have occupied the property since
1976 and it has been used as either staff accommodation or for training
purposes. The building comprises a total of 5,855 sq ft of treatment and
training rooms, together with a large car park on a 1.75 acre site. The
property has previously been granted planning consent for change of use to
residential use.

 

The property has a passing rent of £175,000 pa until the next rent review,
which is due in April 2028. The lease of the Asset, which expires in September
2034, is subject to five-yearly upward only rent reviews linked to CPI subject
to a cap of 4% and a collar of 2% per annum. The property is in an affluent
commuter zone and residential location, a convenient distance from Tring
railway station which provides quick links to central London with excellent
road connectivity.

 

Simon Bennett, Chair of Alternative income REIT plc, commented:

 

"We are pleased to announce the purchase of the Champneys Beauty School near
Tring. This training college is in an affluent commuter location and is let on
a long lease with index-linked rent reviews.

 

The Board continues to believe firmly that the Group is well positioned, given
its diversified and fully let portfolio that delivers secure, long-term and
indexed-linked income flow. The Board remains confident that the Company is
presently on track to deliver on its target annual dividend of 6.2 pence per
share(†) for the Group's financial year ending in June 2025."

 

ENQUIRIES

 Alternative Income REIT PLC
 Simon Bennett - Chair                         via H/Advisors Maitland below

 Martley Capital REIM Ltd                      +44 (0)20 4551 1240

 Richard Croft

 Jane Blore

 Panmure Liberum Limited                       +44 (0)20 3100 2000
 Alex Collins
 Tom Scrivens

 H/Advisors Maitland (Communications Advisor)  07747 113 930 / 020 7379 5151
 James Benjamin                                aire-maitland@h-advisors.global

 

The Company's LEI is 213800MPBIJS12Q88F71.

† This is a target and not a formal dividend forecast or a profit forecast.

 

Further information on Alternative Income REIT plc is available at
www.alternativeincomereit.com (http://www.alternativeincomereit.com/) (1)

 

NOTES

Alternative Income REIT PLC aims to generate a secure and predictable income
return, sustainable in real terms, whilst at least maintaining capital values,
in real terms, through investment in a diversified portfolio of UK properties,
predominantly within the alternative and specialist sectors.

 

The Company's investment adviser is Martley Capital Real Estate Investment
Management Limited ("Martley Capital"). Martley Capital Group is a
full-service real estate investment management platform whose activities cover
real estate investing, lending, asset management and investment advisory. It
has over 35 employees across five offices in the UK and Europe. The team
manages assets with a value of circa £750 million across 20 Mandates (at 30
September 2024).

 

(1)Neither the content of the Company's website, nor the content on any
website accessible from hyperlinks on its website or any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published on a Regulatory Information Service, should any such content be
relied upon in reaching a decision as to whether or not to acquire, continue
to hold, or dispose of, securities in the Company.

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