Business
AEW Long Lease acquires Industrial Estate for £9m
AEW Long Lease acquires Industrial Estate for £9m.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 9987U AEW UK Long Lease REIT PLC 31 October 2017 \n\n31 October 2017\nAEW Long Lease acquires Industrial Estate for £9m\nAEW UK Long Lease REIT plc (\"the Company\") is pleased to announce the acquisition of Pocket Nook Industrial Estate, St Helens for £9.0m reflecting a net initial yield of 5.4%. The 16.1 acre site is let to three tenants and provides a weighted average unexpired lease term of 66 years to expiry, with 49% of the income let to Biffa Waste Services Ltd until 2134. \nThe estate comprises two industrial units, a small office with a large yard and an area of storage land, with an additional unit currently under construction by the vendor and pre-let to Biffa. 76% of the income is backed by the strong covenants of Biffa and the Driving Standards Agency on uncapped RPI linked leases that are reviewed 5 yearly. The Merseyside site is located 0.8 miles away from St Helens town centre and benefits from its proximity to the M57, M6 and M62.\nAlex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: \"This industrial site adds to the diversity of our growing portfolio of properties, which so far includes two hotels, a waterpark and a gym. We are also pleased by the strength of the income that this asset provides and, in particular, Biffa's increasing commitment to the location with the addition of a second unit\"\nThe transaction increases the total amount invested by AEW UK Long Lease REIT plc since listing to £31.1m. In addition to this, the Manager has a further 6 assets under offer and expects to make additional announcements in the coming weeks.\nAEW UK Long Lease REIT plc raised £80.5m from institutional and retail investors at its IPO in June and at that time it stated its expectation to substantially invest the net proceeds within nine months of listing. The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation (RPI or CPI) thereafter.\nThe Company entered the REIT regime with effect from 13 October 2017 following the submission of the application to HM Revenue and Customs.\nENDS\n \nAbout AEW UK Long Lease REIT\nAEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a sustainable, secure and predictable income return, whilst at l...