Aew Uk Reit Regulatory News (AEWU)

23 December 2015

AEW UK REIT plc

AEW UK REIT PLC ANNOUNCES FURTHER ACQUISITION

The Board of AEW UK REIT plc (the "Company") is pleased to announce the acquisition of 40 Queen Square, Bristol.

The Property comprises a 36,365 sq ft city centre office investment, multi-let with a WAULT of approximately 3 years to expiry and 1.5 years to break. It was acquired for £7.2m (net of acquisition costs) reflecting a net initial yield of 8.7%, a reversionary yield of 9.5% (on ERV) and a capital value of £198 per sq ft.

Queen Square was originally developed in the early 1700s and remains today as one of the most sought after business addresses in Bristol. The Square is surrounded by cafes and bars which front the harbour on the southern side, and is only a ten minute walk to the central retail and leisure district around Broadmead, Quakers Friars and Cabot Circus.

With this purchase, the Company has approximately £107m invested in 21 properties and including £9.75m in AEW UK's Core Property Fund.

The Company is a real estate investment trust ("REIT"), which aims to deliver an attractive total return to shareholders from investing predominantly in a portfolio of smaller commercial properties in the United Kingdom. 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 raising £100.5m. The Company raised an additional £17.2m pursuant to a placing which closed on 9 December 2015.

Commenting on the deal, Alex Short, REIT Portfolio Manager at AEW UK Investment Management LLP, said, "We are pleased to have acquired this office investment which is well located in the heart of Bristol with increasing levels of occupier demand driving rental growth."

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