Business
Acquisition of industrial building in Peterborough
Acquisition of industrial building in Peterborough.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \nRNS Number : 2113M AEW UK REIT PLC 27 July 2017 \n\n27 July 2017\nAEW UK REIT plc\nAEW UK REIT acquires industrial building in Peterborough\nAEW UK REIT plc (LSE: AEWU) (the \"Company\"), which owns a diversified portfolio of 32 regional UK commercial property assets, announces the acquisition of a c.182,000 sq ft single-let industrial building in Peterborough, for c.£5.7 million, reflecting a Net Initial Yield of 8.64% and a capital value of c.£31 per sq ft.\n \nThe asset, which is located within the Eastern Industrial Estate, is fully let to Walstead Investments Limited for a term of just under 4 years to expiry. The passing rent of £2.88 per sq ft is low in comparison to some of the recent lettings in the city and the immediate sub region.\n \nEastern Industrial Estate is a well-established estate in the Fengate area and comprises a mix of industrial units, offices, trade counters and a number of car showrooms. The estate is well located for access to the national motorway network, being approximately 1 mile off the A1139, which provides access to junction 17 of the A1(M).\n \nCommenting on the deal, Alex Short, the Company's Portfolio Manager at AEW UK Investment Management LLP, said, \"Peterborough has seen robust occupational performance over the past 24 months with overall vacancy levels for properties over 150,000 sq ft falling below 4%. The acquisition pricing is attractive as it is supported by the asset's underlying vacant possession value which is an important metric for the protection of downside risk.\"\n \n \nABOUT AEW UK REIT\n \nAEW 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 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, raising £100.5m. Since IPO it has raised a further £23m.\n \nSince its IPO in May 2015, AEWU has invested a total of £150 million across 32 regional commercial property assets. It is currently invested in office, retail, industrial and leisure assets, with a focus on active asset management, repositioning the propertie...