AEW UK REIT plc (AEWU)
AEW UK REIT plc: Asset Management Update
19-Jun-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
19 June 2020
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Asset Management Update
AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce that the
Secretary of State for Communities and Local Government has renewed its
lease agreement on the Company's premises at Sandford House, Solihull.
The new 15-year lease agreement increases the rental income that the Company
will receive from the property by 30% and is also expected to result in a
significant value increase for the asset when the portfolio is revalued at
the end of this month. Throughout its hold period, the Company has so far
received a net income yield from the asset in excess of 9% against its
purchase price of GBP5.4 million.
The Secretary of State has occupied the entirety of Sandford House
throughout the period of the Company's ownership which commenced in July
2015. Under the new lease agreement, the 33,954 sq. ft. property has been
let for 15 years with five yearly open market rent reviews and a tenant
break option at year 10. The tenant intends to carry out a major
refurbishment of the property over coming weeks requiring no capital payment
by the Company either by way of refurbishment cost or capital incentive to
the tenant. In addition, no rent-free incentive has been granted to the
tenant.
The property occupies a prime location in the centre of Solihull, close to
its main train station and town centre. Its neighbours include the National
Grid, John Lewis, West Midlands Police, Waitrose and Paragon Bank.
Commenting on the agreement, Alex Short, Portfolio Manager of AEW UK REIT
said, "We are delighted to have secured this highly profitable lease renewal
that crystalises both income growth and value creation for the Company's
investors. The conclusion of this business plan at the current time,
following on from the sale of Corby announced in May, both highlight the
durability of the Company's strategy in seeking to acquire assets whose
pricing is misaligned with their long-term fundamental value. We continue to
look for attractive purchasing opportunities that will deliver robust
returns to our shareholders through the active management of our
properties."
For further information, please contact:
AEW UK
Alex Short alex.short@eu.aew.com
+44(0) 20 7016 4848
Laura Elkin laura.elkin@eu.aew.com
+44(0) 20 7016 4869
Nicki Gladstone nicki.gladstone-ext@eu.aew.com
+44(0) 7711 401 021
Company Secretary aewu.cosec@linkgroup.co.uk
Link Company Matters Limited +44(0) 1392 477 500
TB Cardew aew@tbcardew.com
Ed Orlebar +44 (0) 7738 724 630
Tania Wild +44 (0) 7425 536 903
Lucas Bramwell +44 (0) 7939 694 437
Liberum Capital
Gillian Martin / 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 GBP15 million), on shorter occupational leases in strong
commercial locations across the United Kingdom. The Company was listed on
the Official List of the UK Listing Authority and admitted to trading on the
Main Market of the London Stock Exchange on 12 May 2015, raising GBP100.5m.
Since IPO it has raised a further GBP58m.
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 the income stream.
AEWU is currently paying an annualised dividend of 8p per share.
www.aewukreit.com [1] [2]
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 EUR69.5bn of assets under management as at 31December 2019. 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
December 2019, AEW Group managed EUR33bn of real estate assets on behalf of
a number of funds and separate accounts with over 400 staff located in 9
offices. The Investment Manager is a 50:50 joint venture between the
principals of the Investment Manager and AEW. In May 2019, AEW UK Investment
Management LLP was awarded Property Manager of the Year at the Pensions and
Investment Provider Awards.
www.aewuk.co.uk [3]
LEI: 21380073LDXHV2LP5K50
ISIN: GB00BWD24154
Category Code: MSCL
TIDM: AEWU
LEI Code: 21380073LDXHV2LP5K50
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 70736
EQS News ID: 1073907
End of Announcement EQS News Service
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(END) Dow Jones Newswires
June 19, 2020 02:00 ET (06:00 GMT)
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