Business
AEW UK Long Lease REIT buys Motorpoint showroom
AEW UK Long Lease REIT buys Motorpoint showroom.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 7800Z AEW UK Long Lease REIT PLC 19 December 2017 \n\n19 December 2017\nAEW UK Long Lease REIT acquires Birmingham car showroom for £8m\nAEW UK Long Lease REIT plc (\"the Company\") is pleased to announce the acquisition of Motorpoint Birmingham for £8m. The acquisition reflects a net initial yield of 5.85%.\nThe showroom is located on Lichfield Road, 2 miles north of Birmingham City Centre. The prominent 68,002 sq ft site is let to Motorpoint, the UK's largest independent used vehicle retailer. It comprises a modern, detached two storey vehicle dealership with three large showrooms, as well as a 1.69 acre compound to store 350 cars. The property provides a weighted average unexpired lease term of 19.6 years to expiry and has RPI linked reviews.\nAlex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: \"We are delighted to have completed this acquisition, further broadening the diversity of our investments. We continue to look for opportunities to create shareholder value through targeting alternative property sectors.\"\nThe transaction increases the total amount invested by AEW UK Long Lease REIT plc since listing to £49m. In addition to this, the Manager has a further 13 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 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, h...