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AEW UK REIT PLC
Net Asset Value • May 5, 2021
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AEW UK REIT plc (AEWU)
AEW UK REIT plc: Acquisition of Retail Park
05-May-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
5 May 2021
AEW UK REIT Plc
Acquisition of Retail Park
AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce that it has acquired the 5.65 acre Arrow Point Retail Park in Shrewsbury for a purchase price of £8.35m. The established retail park is located on a busy commercial estate and is fully let. The purchase price reflects a low capital value of £88 per square foot (£1.48m per acre).
The estate provides a net initial yield of 8.7%, with low passing rents compared to competing locations, while being underpinned by industrial and trade rents.
Arrow Point Retail Park comprises a modern purpose-built retail park constructed in 2007, arranged across 9 units in two terraces with 176 car parking spaces to the front. The retail park is prominently located within the main retail warehouse provision of Shrewsbury, approximately 2.5 miles north east of the town centre, tenants include British Heart Foundation, Poundstretcher and Charlie's Stores and neighbours retail occupiers including Matalan and B&M Home Store.
Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are pleased to have acquired the Arrow Point Retail Park. This is an excellent fit for our portfolio and an excellent new contributor to AEWU's income stream, putting to use the profit from the sale of the Solihull office asset in February this year. Retail remains a small percentage of the portfolio's composition and, while we continue to take a cautious approach to this sector, the tenant profile of the site is strong and we are confident that we can manage the assets to drive value for shareholders over the medium to long-term."
Following completion of the above purchase, the Company holds cash of c. £8 million and has c. £15 million of its loan facility available to draw (up to the maximum 35% Loan to NAV at drawdown). The Company's portfolio exposure is broken down by sector as follows:
| Sector | Valuation at 31 March 2021 (including Arrow Point at purchase date) | |
| £ million | % | |
| Industrial | 108.8 | 58.1 |
| Office | 36.8 | 19.6 |
| Retail | 29.2 | 15.6 |
| Other | 12.6 | 6.7 |
| Total | 187.4 | 100.0 |
| Enquiries | |
| AEW UK | |
| Alex Short | [email protected] |
| +44(0) 20 7016 4848 | |
| Nicki Gladstone | [email protected] |
| +44(0) 7711 401 021 | |
| Company Secretary | |
| Link Company Matters Limited | [email protected] |
| +44(0) 1392 477 500 | |
| TB Cardew | [email protected] |
| Ed Orlebar Tania Wild |
+44 (0) 7738 724 630 +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 £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 UK Listing 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 €69.8bn of assets under management as at 31 December 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 31 December 2020, AEW Group managed €34.6bn 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.
| 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.: | 103000 |
| EQS News ID: | 1192499 |
| End of Announcement | EQS News Service |