Business
Purchase of Property
Purchase of Property.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \nRNS Number : 6039Z AEW UK REIT PLC 31 May 2016 \n\n31 May 2016\n \nAEW UK REIT plc\n \nAEW UK REIT PLC ACHIEVES FULL INVESTMENT OF EQUITY AND GEARING TO 20% OF GAV WITH THE ACQUISITION OF TWO MIXED USE ASSETS IN NOTTINGHAM AND BLACKPOOL\n \n \nThe Board of AEW UK REIT plc (the \"Company\") is pleased to announce the acquisition of two mixed use assets in Nottingham and Blackpool for a total of £13.2m, net of acquisition costs. With these two acquisitions the Company has now fully invested its equity capital and is geared to 20% of Gross Asset Value, in line with its investment strategy.\n \nNottingham, acquired for £8.15m, is located on Wheeler Gate with frontage to Old Market Square within the retailing core of the City Centre. The property provides a total of 71,260 sq ft and is let to 6 retail tenants and 9 office tenants including Poundland, Costa and Lakeland providing a WAULT of approximately 4.5 years to break and 5.2 years to expiry. The acquisition provides an initial yield of 9.0%, a reversionary yield of 9.9% and a capital value of £114 per sq ft.\nBlackpool, acquired for £5.05m, is prominently located directly adjacent to the famous Blackpool Tower. The property extends to 100,079 sq ft and provides 3 retail units at ground floor and basement let to Poundland, Sports Direct and J D Wetherspoons providing a WAULT of approximately 7.5 years to break and 10 years to expiry. The upper floors of the property are currently vacant and have been de-listed for rating purposes but provide strong potential for alternative uses which the Company is currently investigating. The acquisition provides an initial yield of 9.5%, a reversionary yield of 8.4% and a capital value of £50 per sq ft.\nWith these purchases, the Company has invested just over £123m in 27 properties, including £9.75m in AEW UK's Core Property Fund.\n \nThe Company is a real estate investment trust (\"REIT\"), which aims to deliver an attractive total return to shareholders from investing predominantly in a portfolio of smaller commercial properties 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. The Company raised an additional £1...