AEW UK REIT PLC - London-based real estate investment trust for UK regional commercial property - Completes sale of holding at 225 Bath Street, Glasgow for GBP9.3 million.
"The sale realises a long-term change of use strategy for the asset with contracts for the sale having been exchanged with a subsidiary company of IQ Student Accommodation in October 2020," firm says.
Notes property planning consent has been gained by IQ for the demolition of the property and development of a 527-unit student accommodation scheme.
Portfolio Manager Laura Elkin says: "The disposal not only maximises the value of the asset but will increase occupancy levels across the remaining portfolio, reduce running costs and boost earnings, once capital is reinvested.
"The proceeds from the sale are already under offer to assets in exclusivity and, as such, we expect to make further purchase announcements in the coming weeks."
Current stock price: 115.60 pence
12-month change: up 11%
By Paul McGowan; paulmcgowan@alliancenews.com
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Aew Uk Reit (AEWU)