Real Estate Firm AEW UK REIT Buys Two Properties For GBP23 Million

LONDON (Alliance News) - AEW UK REIT PLC said Monday it has acquired two properties for a combined price of GBP22.5 million.

The real estate investment trust has bought a section of London East Leisure Park located in the London-area of Dagenham and an industrial unit on Gresford Industrial Estate in Wrexham, Wales.

AEW UK REIT acquired 72,245 square feet of London East Leisure Park for GBP11.5 million. The property currently houses Mecca Bingo, McDonalds and Hollywood Bowl and provides a net initial yield of 8%

The Wrexham property, a 279,541 square feet industrial unit leased to Plastikpak UK Ltd, comprises three units within a self-contained and secure site and was acquired for GBP10.0 million.

AEW UK REIT has drawn GBP10 million from its existing loan facility with RBS International Ltd. The facility amount has also now been increased to enable the company to utilise the facility up to GBP60 million.

"The company has now completed four acquisitions so far this year totalling GBP39 million providing a combined net initial yield of 8.6% which is supportive of our target annual dividend of 8 pence per share. We are encouraged by the strength of our current pipeline and are confident that the buying opportunities that the Company has been taking advantage of since IPO persist."AEW UK REIT Portfolio Manager Alex Short said.

Shares in the company were trading 0.2% lower at 96.10 pence Monday afternoon.