Alternative Inc Regulatory News (AIRE)

22 September 2017

AEW UK Long Lease REIT plc Acquires Newcastle Wet 'n' Wild Water Park for £2.9m

AEW UK Long Lease REIT plc ("the Company") is pleased to announce the acquisition of the Wet 'n' Wild Water Park in Royal Quays, Newcastle-upon-Tyne for £2.9m, its third transaction since its IPO in June. The property comprises a purpose built indoor water park totalling 37,131 sq ft and is let to Serco Leisure Operating Ltd, a wholly owned subsidiary of Serco Plc, for an unexpired term of 22 years with annual rental uplifts linked to RPI. The acquisition reflects a net initial yield of 6.1%.

The waterpark, which was developed in 1992 and fully refurbished in 2014 at the cost of £1.5m, has a dedicated 380 space customer car park and is well positioned within the Royal Quays area, 1.5 miles south west of North Shields town centre. The property is situated immediately adjacent to Star Bowl and opposite the Royal Quays Outlet shopping centre.

The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £17.7m. It has a further eight assets under offer, with a combined value in excess of c £40m and expects to make additional announcements in the coming weeks.

The company raised £80.5m from institutional and retail investors at the IPO and at that time it stated its expectation to substantially invest the net proceeds within nine months of listing. The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation thereafter.

About AEW UK Long Lease REIT

AEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a sustainable, secure and predictable income return, whilst at least maintaining capital values in real terms, by investing in a diversified portfolio of UK properties, with an attractive entry yield, predominately in alternative and specialist sectors. It will invest in a diverse range of sectors that are underrepresented in institutional portfolios including leisure, healthcare, education, hotels, student accommodation, supported living and automotive. At its IPO on June 6 2017, AEWL raised £80.5m from institutional and retail investors. At least 85% of the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years.

About AEW UK Investment Management LLP

AEW UK Investment Management LLP employs a well-resourced team comprising 25 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €58.5 billion of assets under management as at 30 June 2017. 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 30 June 2017, AEW Group managed €26.0 billion in value in properties of all types located in 14 countries, with over 380 staff. The Investment Manager is a 50:50 joint venture between the principals of the Investment Manager and AEW.

AEW UK

About AEW Europe

AEW is one of the world's largest real estate asset managers, with €58.5bn of assets under management as at 30 June 2017. AEW has over 600 employees, with its main offices located in Boston, London, Paris and Hong Kong and offers a wide range of real estate investment products including comingled funds, separate accounts and securities mandates across the full spectrum of investment strategies. AEW represents the real estate asset management platform of Natixis Global Asset Management, one of the largest asset managers in the world.

As at 30 June 2017, AEW managed €26.0bn of real estate assets in Europe on behalf of a number of funds and separate accounts. AEW has over 300 employees based in 10 offices across Europe and has a long track record of successfully implementing core, value-add and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of over €17.5bn of real estate across European markets.