Business
Sale of Unit 1, Clarke Road, Milton Keynes
Sale of Unit 1, Clarke Road, Milton Keynes.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \n \n 20 March 2023\n \n \n \n \n \n \n \n \n AEW UK REIT plc\n \n \n \n \n \n \n \n \n \n Sale of Unit 1, Clarke Road, Milton Keynes\n \n \n \n \n \n \n \n \n \n AEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that it has completed the sale of its industrial holding at Clarke Road, Milton Keynes, for £2,750,000 (circa £91 per sq ft), reflecting a 6.3% net initial yield (NIY).\n \n \n The 30,262 sq ft industrial unit was acquired in October 2015 for £1,526,000 (circa £50 per sq ft), reflecting an 8.3% NIY. Since acquisition, the property has been re-let to FMG Repair Services Limited, with a guarantor from Northgate Vehicle Hire, on a 10-year lease, with a 5-year tenant break option. By securing a stronger covenant on a longer lease, the sale realises significant profit, exceeding the 31 December 2022 valuation of £2,580,000 by circa 6.6%, and the price paid at acquisition by circa 80.2%.\n \n \n After completion of the sale, the Company will have approximately 7.5 million to deploy on an attractive pipeline of higher yielding assets which will be more accretive to the Company's earnings.\n \n \n \n Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented\n \n : \"Clarke Road has performed well, delivering excellent returns to AEWU shareholders since original investment. The value created through completion of the new letting presented an opportunity to crystallise the asset's strong performance, with the intention of reinvesting the proceeds into higher yielding opportunities and, as such, we expect to make further purchase announcements in the coming months.\"\n \n \n \n ENDS\n \n \n \n \n \n \n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n AEW UK\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Laura Elkin\n \n \n \n \n \n \n [email protected]\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n +44(0) 7917 058 337\n \n \n \n \n \n \n Henry Butt\n \n \n \n \n \n \n [email protected]\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n +44(0) 7920 499 076\n \n \n \n \n \n \n Nicki Gladstone\n \n \n \n \n \n \n [email protected]\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n +44(0) 7711 401 021\n \n \n \n \n \n \n \n Company Secretary\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Lin...