TIDMAEWU

RNS Number : 7827L

AEW UK REIT PLC

08 September 2023

08 September 2023

AEW UK REIT plc

Acquisition of high yielding mixed-use office in Bath

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that it has completed the purchase of a freehold, mixed-use asset in Bath city centre for GBP11,500,000, reflecting an attractive net initial yield of 8.0% and a capital value of GBP223 per sq ft. Following this acquisition, the Company is close to full deployment, with remaining cash available to invest of circa GBP3m.

The property comprises a rare freehold island site totalling circa 0.4 acres and is located immediately adjacent to the South Gate Shopping Centre which forms part of the city's core retail provision. Bath Spa Train Station is less than a five minute walk from the property, with other key tourist attractions such as Bath Cathedral, the Roman Baths and Pulteney Bridge within a short distance.

The 51,632 sq ft asset is multi-let to five tenants across office and retail accommodation. The majority of the building is let to four office tenants at a low average passing rent of circa GBP22 per sq ft. Income levels are expected to improve via rent reviews in the short-term and through lease renewals and re-lettings over the medium-term. Light refurbishment may also be considered in order to fully capitalise on the building's prime location and prominence. A vacant retail unit, fronting Philip Street and Ham Gardens, is currently under offer to an established local retailer. We expect market conditions to remain favourable in this location given the low level of available and consented supply, coupled with strong demand for well-specified and well-located accommodation.

Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said, "We are pleased to have purchased this very well-located, mixed-use asset at a day one yield that will be accretive to the Company's earnings and brings the REIT one step closer to full deployment, with just GBP3m left to invest. Completion of the acquisition continues the strategic reinvestment of capital generated from recent sales into higher yielding assets in core urban locations. "

ENDS

 
 Enquiries 
 AEW UK 
 Laura Elkin                       laura.elkin@eu.aew.com 
                                   +44(0) 7917 058 337 
 Henry Butt                        henry.butt@eu.aew.com 
                                   +44(0) 7920 499 076 
 Nicki Gladstone                   nicki.gladstone-ext@eu.aew.com 
                                   +44(0) 7711 401 021 
 Company Secretary 
 Link Company Matters Limited      aewu.cosec@linkgroup.co.uk 
                                   +44(0) 7548773155 
 
 TB Cardew                         AEW@tbcardew.com 
 Ed Orlebar                        +44 (0) 7738 724 630 
 Tania Wild                        +44 (0) 7425 536 903 
 Henry Crane                       +44 (0) 7918 207 157 
 
 
   Liberum Capital 
 Darren Vickers / Owen Matthews    +44 (0) 20 3100 2222

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 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 29 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with EUR84.9bn of assets under management as at 31 December 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 December 2022, AEW Group managed EUR38.5bn of real estate assets on behalf of a number of funds and separate accounts with over 470 staff located in 10 locations.

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(END) Dow Jones Newswires

September 08, 2023 02:00 ET (06:00 GMT)

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