Business
AEW UK REIT acquires high yielding retail property
AEW UK REIT acquires high yielding retail property.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \nRNS Number : 4250V AEW UK REIT PLC 02 November 2017 \n\nAEW UK REIT plc acquires Commercial Road retail properties in Portsmouth for £6.4m\n \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 208-220 Commercial Road and 7-13 Crasswell Street, Portsmouth for £6.4m. \n \nThe asset provides a net initial yield of 9.6% and is fully let to seven retail tenants and one office tenant providing a WAULT of 4 years to expiry. The 15,553 sq ft retail property is situated within the prime pedestrianised pitch of Commercial Road within Portsmouth's city centre. The property is also directly opposite the main covered shopping centre, The Cascades, which is anchored by Primark, H&M, Next and Marks and Spencer. \n \nAs part of the 'Shaping Portsmouth' development initiative, the city is set to receive £1 billion of investment from both public and private sector organisations over the next 20 years. \n \nAlex Short, Portfolio Manager, AEW UK REIT, commented: \"We are pleased to have completed this latest acquisition which we expect to prove accretive to the Company's yield both on an initial and equivalent basis. When acquiring High Street retail assets we appraise a conservative scenario and therefore we were attracted by both the central location of these units and also the asset management and lease renewal opportunities that the asset provides. The addition of this property complements our existing portfolio and we are pleased to be investing again following the completion of our successful capital raise in October.\"\n \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.\n \nENDS\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,...