Business
AEW Long Lease buys industrial buildings for £3.9m
AEW Long Lease buys industrial buildings for £3.9m.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 8757A AEW UK Long Lease REIT PLC 17 September 2018 \n\nAEW UK Long Lease buys industrial buildings in Sittingbourne for £3.9m\nAEW UK Long Lease REIT (\"the Company\") is pleased to announce that it has purchased two industrial buildings on the Eurolink Industrial Estate, Sittingbourne for £3.9m, reflecting a net initial yield of 6.3%.\nThe property comprises two warehouse buildings totalling 43,636 sq ft let to Doré Metals Services Southern Ltd, which has had its headquarters on the site since 2007. The lease provides a new 15 year term expiring in September 2033 and has 5 yearly RPI linked rent reviews.\nThe site is located on the established Eurolink Industrial Estate in central Sittingbourne, with excellent access to the M2 and M20 and one mile from Sittingbourne station. Other occupiers in the vicinity include Everest and B+M Steel. The surrounding area comprises a mix of residential, industrial and commercial uses.\nAlex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: \"Demand for industrial property in the South East makes this a great addition to our diverse portfolio. Given this strong demand, we think that the property provides good potential for rental growth over the long term, both from its inflation linked uplifts and in terms of open market levels as well.\"\nThe Company is targeting an annual dividend of 5.5 pence per share paid quarterly, with an ambition to grow in line with UK inflation thereafter. \nENDS\nAbout AEW UK Long Lease REIT\n \nAEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a sustainable, secure and predictable income return, whilst at least maintaining capital values in real terms, by investing in a diversified portfolio of UK properties, with an attractive entry yield, predominately in alternative and specialist sectors. It will invest in a diverse range of sectors that are underrepresented in institutional portfolios including leisure, healthcare, education, hotels, student accommodation, supported living and automotive. At its IPO on June 6 2017, AEWL raised £80.5m from institutional and retail investors. At least 85% of the gross passing rent from the portfolio's leases will contain inflation linked rent reviews, and average initial unexpired leases in excess of 18 years at the time of investment.\nwww.aewukll...