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AEW UK REIT PLC
Net Asset Value • Jun 23, 2021
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AEW UK REIT plc (AEWU)
AEW UK REIT plc: Acquisition of prime retail site in Bristol city centre
23-Jun-2021 / 08:13 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
23 June 2021
AEW UK REIT Plc
Acquisition of prime retail site in Bristol city centre
AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce the acquisition of a prime retail site in the heart of Bristol city centre for a purchase price of £10.19 million, equating to £161 per sq ft and reflecting a net initial yield of 8%.
15-33 Union Street occupies a prominent location in Bristol city centre, opposite The Galleries Shopping Centre and near Cabot Circus, Bristol's premier retail destination. Located on a busy thoroughfare for pedestrians, the 63,125 sq ft property experiences high footfall and is ideally suited for retail or leisure use. The location of the site has also been identified as a major regeneration area.
Constructed in 2001, the property currently comprises five purpose built split-level retail or leisure units over four floors with road access to both Union Street and Fairfax Street. Four of the five units are let to three household names and a successful local retailer. The remaining unit is currently vacant, with the vendor providing a 12 month rent guarantee. We are currently in discussions with a number of parties who are keen to occupy this space.
Alex Short, Portfolio Manager, AEW UK REIT, commented: "We are pleased to have acquired this prominent and busy city centre property. This is an excellent fit for our portfolio and will immediately contribute to AEWU's income stream. The site offers the opportunity to benefit from the major regeneration currently underway in Bristol city centre over the long-term. While we have made two recent investments in the retail sector, our overall exposure remains relatively low compared to industrial. We continue to take a cautious approach to retail, judging each site on its specific merits."
Following completion of the above purchase, the Company holds c. £6.7 million of cash and has available c. £4.5 million of its debt facility up to the drawdown limit of 35% Loan to NAV.
The Company's portfolio exposure is broken down by sector as follows:
| Sector | Valuation (as provided by Knight Frank as at 31 March 2021 plus subsequent acquisitions at purchase price) | |
| £ million | % | |
| Industrial | 108.8 | 55.1 |
| Retail | 39.3 | 19.9 |
| Office | 36.8 | 18.6 |
| Other | 12.6 | 6.4 |
| Total | 197.5 | 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 | |
| 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 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 €72.8bn of assets under management as at 31 March 2021. 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 2021, AEW Group managed €35.7bn 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 |
| Sequence No.: | 112922 |
| EQS News ID: | 1210822 |
| End of Announcement | EQS News Service |