Business
AEW UK REIT acquires Gloucester office block
AEW UK REIT acquires Gloucester office block.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \nRNS Number : 8980Z AEW UK REIT PLC 20 December 2017 \n\n20 December 2017 \nAEW UK REIT acquires Gloucester office block for £3.1m\nAEW UK REIT plc (\"the Company\"), which directly owns a diversified portfolio of regional UK commercial property assets, is pleased to announce the acquisition of Cedar House, Spa Road, Gloucester for £3.1m.\nThe five-storey office block, which is located within the city centre adjacent to Gloucester Park, has been acquired for a price reflecting a low capital value of only £80 per sq ft and an attractive net initial yield of 9.1%. The property is currently let to the Secretary of State for Communities & Local Government for use as a Job Centre, with a short unexpired lease term of 0.3 years. However, the tenant has already served a Section 26 notice to renew the lease and as such the Investment Manager believes that the income can be extended. \nThe property is situated within a mixed office and residential area and as such the Investment Manager believes that it provides good long-term alternative use potential. Public transport is easily accessible, with good links to Gloucester Railway Station and a central bus route.\nThe asset provides a total floor area of 38,427 sq ft and includes substantial car parking facilities, with 103 spaces available.\nAlex Short, Portfolio Manager, AEW UK REIT, commented: \"We are delighted to have completed this latest acquisition following our successful capital raise in October. Heading into 2018, we are pleased to have an attractive pipeline of investment opportunities ahead of us and with further assets under offer we expect to make more acquisition announcements shortly.\"\nOn 20 October AEW UK REIT announced that it had raised £28.1m through the initial issue of the Share Issuance Programme, as described in the prospectus published by the Company on 28 September 2017.\nENDS\n \nAbout AEW UK REIT \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 £10m), 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 ...