AEW UK REIT plc: Acquisition of Central Six Retail Park, Coventry (1246929)
November 08 2021 - 4:38AM
UK Regulatory
AEW UK REIT plc (AEWU) AEW UK REIT plc: Acquisition of Central
Six Retail Park, Coventry 08-Nov-2021 / 09:38 GMT/BST Dissemination
of a Regulatory Announcement, transmitted by EQS Group. The issuer
is solely responsible for the content of this announcement.
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8 November 2021
AEW UK REIT Plc
Acquisition of Central Six Retail Park, Coventry
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased
to announce the acquisition of the 11.91 acre Central Six Retail
Park in Coventry for a purchase price of GBP16,411,000 / GBP110 per
sq ft. The purchase price reflects a net initial yield of circa
11%, with an anticipated reversionary yield of circa 12.5%. The
acquisition is accretive to the EPRA EPS and takes AEWU close to
full investment, having recently completed the sales of two of its
industrial holdings in South Kirkby and Basingstoke at prices 87%
and 73% above their purchase prices, respectively.
The acquisition demonstrates the Manager's view that there
continue to be interesting opportunities to acquire assets that
provide strong income yields to support the ongoing dividend
payment, while also enhancing the capital performance of its
assets. The site presents opportunities to add value through active
asset management by renewing current tenancies and securing new
tenants on the park. This purchase will be accretive to AEWU's
income return and it is anticipated that asset management
initiatives will result in NAV growth.
The site occupies a strategic and central location,
approximately 0.7 miles away from Coventry city centre and adjacent
to Coventry Railway Station and the Friargate Regeneration area.
The retail park is highly accessible and provides 148,765 sq ft of
modern purpose-built retail space with parking for 635 cars. The
site cover is just 27%. Units are let to household name retailers
including TK Maxx, Next, Boots, Sports Direct, Burger King and
Poundland. Coventry has one of the fastest growing populations in
the UK outside of London. Between 2019 and 2024 it is expected to
grow by 1.25% per annum, ranking the city second out of 200 in the
PROMIS Centres Retail Report.[1] Coventry was named the UK's City
of Culture 2021, which is estimated to generate an additional
GBP80m for the local economy.
The tenants at Central Six Retail Park have proven to be
resilient during the pandemic, with rent collection rates generally
being strong.
Alex Short, Portfolio Manager, AEW UK REIT plc, commented: "We
are pleased to have acquired Central Six Retail Park in Coventry,
which has been purchased for a price that will deliver an excellent
initial yield and contribute immediately to shareholder returns.
The park offers further opportunity to manage the assets
proactively to enhance NAV over the longer term. At present the
retail warehouse sector is providing some interesting
opportunities, often underpinned by alternative use value, and
occupied by tenants that have shown resilience during the pandemic.
We are pleased to add this asset to the portfolio and will continue
to target acquisitions where we believe valuations offer the
opportunity to deliver both strong income and capital performance.
The Company continues to judge each asset on its own specific
merits, rather than being entirely sector driven in its purchasing
strategy."
Sector Valuation (as provided by Knight Frank as at 30 September 2021, including sale of Wella Basingstoke plus
subsequent acquisition at purchase price)
GBP million %
Industrial 109.72 50.31
Office 39.95 18.32
Retail - 31.26 14.33
Warehousing
Retail - High 24.62 11.29
Street
Other 12.55 5.75
Total 218.1 100
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 + 44 (0) 7738 724 630
Tania Wild +44 (0) 7425 536 903
Lucas Bramwell +44 (0) 7939 694 437
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 GBP15 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 29 individuals covering investment, asset management,
operations and strategy. It is part of AEW Group, one of the
world's largest real estate managers, with EUR75.4bn of assets
under management as at 30 June 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 30 June 2021,
AEW Group managed EUR36.6bn of real estate assets on behalf of a
number of funds and separate accounts with over 440 staff located
in 9 offices. 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
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[1] PROMIS: The UK Property Market Information Service (PROMIS)
is a key source of comprehensive and independent analysis of
town-level property markets. Since 1982, PROMIS has provided
up-to-date, consistent, and independent town-level property
analysis to support investment, valuation, development and
consultancy.
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ISIN: GB00BWD24154
Category Code: MSCH
TIDM: AEWU
LEI Code: 21380073LDXHV2LP5K50
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 126254
EQS News ID: 1246929
End of Announcement EQS News Service
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