Business
AEW UK Long Lease REIT acquires Wandsworth Gym
AEW UK Long Lease REIT acquires Wandsworth Gym.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 6189T AEW UK Long Lease REIT PLC 16 October 2017 \n\n16 October 2017\nAEW UK Long Lease REIT acquires Wandsworth Road Pure Gym for £4.4m\nAEW UK Long Lease REIT plc (\"the Company\") is pleased to announce the completed acquisition of 212 Wandsworth Road, London for £4.4m. The property, which is fully let to Pure Gym Limited at a low passing rent of £11.60 per sq ft, provides an unexpired lease term of 10.2 years to break and 15.1 years to expiry, with five yearly RPI linked reviews. The acquisition price reflects a net initial yield of 5.1%. \n \nThe 19,900 sq ft property, constructed in 2012, is situated within close proximity to the new Nine Elms Northern Line London Underground station which is planned to open in 2020. In addition the Borough of Lambeth is currently undergoing extensive redevelopment as part of a 561 acre regeneration plan to transform the area into a residential, cultural and business quarter, increasing employment, residents and investment in the local area.\n \nAlex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: \"We are very pleased to have completed this latest acquisition in a key inner London growth area. One of the property's particular attractions is its comparatively low passing rent which provides value add opportunities for the future. We continue to see good momentum in the coming months and expect to announce further acquisitions in the near future.\"\n \nThe transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £22.1m. In addition to this, the Manager has a further 6 assets under offer and expects to make additional announcements in the coming weeks.\n \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 thereafter.\n \nThe Company entered the REIT regime with effect from 13 October 2017 following the submission of the application to HM Revenue and Customs.\n \n \nAbout AEW UK Long Lease REIT\nAEW UK Long Lease RE...