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AEW UK Long Lease REIT buys Power Station Asset
AEW UK Long Lease REIT buys Power Station Asset.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 7634A AEW UK Long Lease REIT PLC 03 January 2018 \n\n3 January 2018\nAEW UK Long Lease REIT acquires Hoddesdon waste to energy asset for £4.8m\nAEW UK Long Lease REIT plc (\"the Company\") is pleased to announce the acquisition of an industrial asset in Hoddesdon, Hertfordshire for £4.8m. The acquisition, which completed on the 28 December, reflects a net initial yield of 5.9% and provides a lease term of 32 years to expiry and 14 years to break. \nThe 47,350 sq ft property is fully let to Hoddesdon Energy Ltd who occupy the building for use as a thermal treatment, waste to energy power plant. Hoddesdon Energy received investment of £60m from the Green Investment Bank, the Noy Fund and P3P Partners for the construction of the plant which is designed to produce energy from the combustion of dry commercial waste. When running it will be able to provide power to over 7,000 homes using about 90,000 tonnes of feedstock each year supplied by two waste management companies. The plant will be operated by Bouygues Energies and Services, a leading global contractor specialising in energy sectors.\nThe energy plant is located in the commuter town of Hoddesdon, with convenient links to the M1, M11, M25 and two mainline train stations. The area has successfully established itself as a hub for power stations, with Rye House Power Station run by Scottish Power located adjacently. The property is let at a passing rent equating to £6.30 per sq ft compared to nearby standard industrial accommodation which is currently attracting rents in excess of £8 per sq ft.\nAlex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: \"We are pleased to announce this latest acquisition in such an important and growing sector that rarely forms part of institutional property investment portfolios. The acquisition yield and long income stream benefiting from CPI linked uplifts, applied 5 yearly, made this a particularly attractive prospect.\"\nThe transaction increases the total amount invested by AEW UK Long Lease REIT plc since listing to £71m. In addition to this, the Manager has a further 10 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 ti...