Business
Sale of high-street retail asset in Portsmouth
Sale of high-street retail asset in Portsmouth.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n\n09 October 2023\n \nAEW UK REIT plc\n \nSale of high-street retail asset in Portsmouth\n \nAEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has completed the sale of its freehold high-street retail holding at 208-220 Commercial Road and 7-13 Crasswell Street, Portsmouth, for £3,900,000, reflecting a net initial yield of 9.9% and a capital value of £251 per sq ft. A sale at this price reflects a circa 22% premium to the 30 June 2023 valuation of £3,200,000. \n \nFollowing the completion of two new lettings to Kokoro and Specsavers earlier this year, the property is now fully let. This, coupled with the risk of the main tenant, Nationwide Building Society (\"Nationwide\"), being significantly overrented, prompted the decision to sell. The value of the asset is likely to deteriorate as Nationwide's lease becomes shorter, with the threat of the tenant leaving on expiry in 2029 creating the possibility of a long-term void. \n \nCommenting on the sale, Laura Elkin, Portfolio Manager of AEW UK REIT said: \"We are pleased to have sold this holding for a healthy premium to valuation, having completed the asset management strategy, and therefore maximised value. Going forward, the asset presents a potential risk to the Company's shareholders, which further justifies a sale at this point in time. The Company's focus for the deployment of capital continues to be on the consideration of further accretive investment opportunities, alongside re-investment into the existing portfolio where capex is needed in order to drive future performance gains\".\n \n \nENDS\n \n \n\n\n\nEnquiries\n\n\n\n\n\n\n\nAEW UK\n\n\n\n\n\n\n\nLaura Elkin\n\n\[email protected]\n\n\n\n\n\n\n\n+44(0) 7917 058 337\n\n\n\n\nHenry Butt\n\n\[email protected]\n\n\n\n\n\n\n\n+44(0) 7920 499 076\n\n\n\n\nNicki Gladstone\n\n\[email protected]\n\n\n\n\n\n\n\n+44(0) 7711 401 021\n\n\n\n\nCompany Secretary\n\n\n\n\n\n\n\nLink Company Matters Limited\n\n\[email protected]\n\n\n\n\n\n\n\n+44(0) 7548773155\n\n\n\n\n\n\n\n\n\n\n\n\nTB Cardew\n\n\[email protected]\n\n\n\n\nEd Orlebar\n\n\n+44 (0) 7738 724 630\n\n\n\n\nTania Wild\n\n\n+44 (0) 7425 536 903\n\n\n\n\nHenry Crane\n\n\n+44 (0) ...