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AEW UK REIT PLC
M&A Activity • Nov 10, 2020
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National Storage Mechanism | Additional information
AEW UK REIT plc (AEWU)
AEW UK REIT plc: Acquisition of Industrial Estate
10-Nov-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.
10 November 2020
Acquisition of Industrial Estate
AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce that it has acquired the multi-let Westlands Distribution Park in Weston Super Mare for a purchase price of £5.4m.
The purchase price reflects a low capital value of £175,000 per acre which provides strong potential for future capital value growth based upon nearby comparable land transactions which range between £350,000 and £500,000 per acre for other commercial and residential uses.
The estate provides a net initial yield of 6.4% which is expected to increase to at least 7.4% within the medium term. The average passing rent of £1.50 per sq ft also provides strong potential for rental growth.
The established 323,437 sq ft estate is let to 15 tenants including North Somerset District Council who make up 30% of the income stream. It is located 3 miles from the M5 Motorway and 20 miles south of Bristol city centre.
Alex Short and Laura Elkin, Portfolio Managers, AEW UK REIT, commented: "Following the very profitable sale of our largest asset in Corby during May, we have undertaken cautious analysis of the investment market and our pipeline in the intervening months when looking to replace Corby and its income stream within the portfolio. This latest acquisition is an excellent fit for the portfolio as it offers significant potential for future value accretion in addition to its very low level of passing rent which provides strong prospects for future rental growth"
Following completion of the above purchase, the Company holds cash of c £9.24 million. The Company's portfolio exposure is broken down as follows by sector:
| Sector | Valuation at 30 September 2020 (including Weston Super Mare at purchase date) | |
| £ million | % | |
| Industrial | 96.01 | 54.3 |
| Office | 45.85 | 25.9 |
| Retail | 21.90 | 12.4 |
| Other | 13.00 | 7.4 |
| Total | 176.76 | 100.0 |
| Enquiries | |
| AEW UK | |
| Alex Short | [email protected] |
| +44(0) 20 7016 4848 | |
| Laura Elkin | [email protected] +44(0) 20 7016 4869 |
| Nicki Gladstone | [email protected] |
| +44(0) 7711 401 021 | |
| Company Secretary | |
| Link Company Matters Limited | [email protected] |
| +44(0) 1392 477 509 | |
| TB Cardew | [email protected] |
| Ed Orlebar | +44 (0) 7738 724 630 |
| 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 £15 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 £100.5m. Since IPO it has raised a further £58m.
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.
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 €70.2bn of assets under management as at 30 June 2020. 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 30 June 2020, AEW Group managed €33.6bn of real estate assets on behalf of a number of funds and separate accounts with over 420 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.
LEI:21380073LDXHV2LP5K50
| ISIN: | GB00BWD24154 |
| Category Code: | MSCM |
| 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.: | 87515 |
| EQS News ID: | 1146730 |
| End of Announcement | EQS News Service |