Last checked at 22 Aug 2022 07:00
22 August 2022
AEW UK REIT Plc
Sale of 225 Bath Street, Glasgow
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that it has now completed on the sale of its holding at 225 Bath Street, Glasgow for the price of £9,300,000.
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. As stated in AEWU's announcement on 11 February 2022, planning consent has been gained by IQ for the demolition of the property and development of a 527-unit student accommodation scheme.
The sale agreement required AEWU to negotiate with tenants to bring the asset to vacancy and, as a result, following its sale the occupancy rate for AEWU's remaining portfolio will increase to 91.60% from 86.97% as at 30 June 2022. Reinvestment of the sale proceeds into pipeline assets under exclusivity is expected to provide a significant boost to the Company's earnings due to both higher levels of anticipated income receipts and lower running costs.
Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented: "As the culmination of a long running business plan, we are delighted to see this sale complete. 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."
ENDS
Enquiries | |
AEW UK | |
Laura Elkin | laura.elkin@eu.aew.com |
+44(0) 7917 058 337 | |
Henry Butt | henry.butt@eu.aew.com |
+44(0) 7920 499 076 | |
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 | +44 (0) 7738 724 630 |
Tania Wild | +44 (0) 7425 536 903 |
Henry Crane | +44 (0)7918 207157 |
Liberum Capital | |
Darren Vickers / 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 Financial Conduct 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 28 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €88.2bn of assets under management as at 31 December 2021. 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 2021, AEW Group managed €38.5bn of real estate assets on behalf of a number of funds and separate accounts with over 450 staff located in 12 locations. In May 2019, AEW UK Investment Management LLP was awarded Property Manager of the Year at the Pensions and Investment Provider Awards.