Aew Uk Reit Regulatory News (AEWU)

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	alex.short@eu.aew.com
	+44(0) 20 7016 4848
Nicki Gladstone	nicki.gladstone-ext@eu.aew.com
	+44(0) 7711 401 021
Company Secretary
Link Company Matters Limited	aewu.cosec@linkgroup.co.uk
	+44(0) 1392 477 500
TB Cardew	AEW@tbcardew.com
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.

 

www.aewuk.co.uk