Last checked at 
LONDON (Alliance News) - AEW UK REIT PLC on Monday said it has spent GBP12.2 million on three property assets, meaning it has now fully invested the proceeds of its initial public offering.
The first of those properties is a 49,764 square foot town centre leisure investment in Southend-on-Sea, let to Odeon Cinemas Ltd, with a weighted average unexpired lease term of about seven years to expiry. The property was acquired for GBP5.7 million net of acquisition costs, reflecting a net initial yield of 8.4%, a reversionary yield of 9.1% and a capital value of GBP115 per square foot.
AEW UK REIT has also acquired Cleaver House, Runcorn, which is a single let industrial unit forming part of the Sarus Court development that was acquired by the company in October. The property was acquired for GBP910,000 net of acquisition costs, reflecting a net initial yield of 7.9%, a reversionary yield of 8.3% and a capital value of GBP57 per square foot. The property is fully let to Performance Products Ltd with expiry in 2021 and a tenant break option in 2018.
In addition, the real estate investment trust has acquired Oak Park, a 188,515 square foot industrial complex in Droitwich, let to Egbert H. Taylor & Co Ltd, which trades as Taylor Bins. It has a weighted average unexpired lease term of about seven years to expiry. The property was purchased for GBP5.6 million net of acquisition costs, reflecting a net initial yield of 10.4%, a reversionary yield of 10.4% and a capital value of GBP30 per square foot.
AEW UK REIT raised GBP100.5 million in its initial public offering in May.
Shares in AEW UK REIT were down 0.5% at 100.51 pence close to midday on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.