12 August 2022
AEW UK REIT Plc
Acquisition of high yielding Glasgow leisure asset
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that, as anticipated in it's NAV update on the 27th July, the sale of its ownership at Eastpoint Business Park in Oxford has completed on 8th August for £29,000,000. The sale of the property at Moorside Road in Swinton for £1,700,000, completed on 9th August. Following these disposals, the Company is pleased to announce that it has unconditionally exchanged contracts to acquire a high yielding asset located in Glasgow at a price of 2,600,000 reflecting a low capital value of £99 per sq ft and providing an attractive net initial yield of 7.4%.
The Glasgow asset comprises a solus leisure and retail warehousing unit let to JD Sports Gym Ltd, which operates 74 gyms in the UK and is a subsidiary of JD Sports Fashion Plc. It is located fronting the A81 Craigmont Drive, approximately 2.5 miles north-west of Glasgow city centre. The site also contains a vacant plot of land which may be suitable for redevelopment over the medium term, subject to planning.
The lease provides an unexpired lease term of 10.6 years, benefitting from five-yearly upward-only reviews. The sale is due to complete in the week commencing 15 August.
Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said, "With the completion of two major sales this month, we are very pleased to have exchanged this acquisition which will provide an attractive income stream for the portfolio. The asset, located in a prominent position within a major UK city, has the potential for asset management to add further value over the longer-term. We have been actively seeking value assets such as this and are pleased that all incoming capital has now been committed to purchases that are under exclusivity. We expect to make further purchase announcements in this respect in due course".
ENDS
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Enquiries |
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AEW UK |
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Laura Elkin |
+44(0) 20 7016 4869 |
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Henry Butt |
+44(0) 20 7016 4869 |
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Nicki Gladstone |
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+44(0) 7711 401 021 |
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Company Secretary |
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Link Company Matters Limited |
aewu.cosec@linkgroup.co.uk |
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+44(0) 1392 477 500 |
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TB Cardew |
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Ed Orlebar Tania Wild |
+44 (0) 7738 724 630 +44 (0) 7425 536 903 |
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Liberum Capital |
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Darren Vickers / Owen Matthews |
+44 (0) 20 3100 2000 |
Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than 15 million), on shorter occupational leases in strong commercial locations across the United Kingdom. The Company is currently invested in office, retail, industrial and leisure assets, with a focus on active asset management, repositioning the properties and improving the quality of income streams. AEWU is currently paying an annualised dividend of 8p per share.
The Company was listed on the Official List of the Financial Conduct Authority and admitted to trading on the Main Market of the London Stock Exchange on 12 May 2015. www.aewukreit.com
LEI: 21380073LDXHV2LP5K50
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team comprising 26 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with 85.2bn of assets under management as at 31 March 2022. AEW Group comprises AEW SA and AEW Capital Management L.P., a U.S. registered investment manager and their respective subsidiaries. In Europe, as at 31 March 2022, AEW Group managed 39.5bn of real estate assets on behalf of a number of funds and separate accounts with over 470 staff located in 12 locations.