AEW UK Long Lease REIT PLC AEW UK Long Lease REIT buys Power Station Asset (7634A)
January 03 2018 - 2:00AM
UK Regulatory
TIDMAEWL
RNS Number : 7634A
AEW UK Long Lease REIT PLC
03 January 2018
3 January 2018
AEW UK Long Lease REIT acquires Hoddesdon waste to energy asset
for GBP4.8m
AEW UK Long Lease REIT plc ("the Company") is pleased to
announce the acquisition of an industrial asset in Hoddesdon,
Hertfordshire for GBP4.8m. The acquisition, which completed on the
28 December, reflects a net initial yield of 5.9% and provides a
lease term of 32 years to expiry and 14 years to break.
The 47,350 sq ft property is fully let to Hoddesdon Energy Ltd
who occupy the building for use as a thermal treatment, waste to
energy power plant. Hoddesdon Energy received investment of GBP60m
from the Green Investment Bank, the Noy Fund and P3P Partners for
the construction of the plant which is designed to produce energy
from the combustion of dry commercial waste. When running it will
be able to provide power to over 7,000 homes using about 90,000
tonnes of feedstock each year supplied by two waste management
companies. The plant will be operated by Bouygues Energies and
Services, a leading global contractor specialising in energy
sectors.
The energy plant is located in the commuter town of Hoddesdon,
with convenient links to the M1, M11, M25 and two mainline train
stations. The area has successfully established itself as a hub for
power stations, with Rye House Power Station run by Scottish Power
located adjacently. The property is let at a passing rent equating
to GBP6.30 per sq ft compared to nearby standard industrial
accommodation which is currently attracting rents in excess of GBP8
per sq ft.
Alex Short, Director of AEW UK Investment Management LLP, and
Portfolio Manager of the Company said: "We are pleased to announce
this latest acquisition in such an important and growing sector
that rarely forms part of institutional property investment
portfolios. The acquisition yield and long income stream benefiting
from CPI linked uplifts, applied 5 yearly, made this a particularly
attractive prospect."
The transaction increases the total amount invested by AEW UK
Long Lease REIT plc since listing to GBP71m. In addition to this,
the Manager has a further 10 assets under offer and expects to make
additional announcements in the coming weeks.
AEW UK Long Lease REIT plc raised GBP80.5m from institutional
and retail investors at its IPO in June 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 (RPI or
CPI) thereafter.
The Company entered the REIT regime with effect from 13 October
2017 following the submission of the application to HM Revenue and
Customs.
ENDS
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 6 June 2017, AEWL raised GBP80.5m from institutional and
retail investors. At least 85% of gross passing rent from the
portfolio's leases will contain inflation-linked rent reviews, and
average initial unexpired leases in excess of 18 years at the time
of investment.
About AEW UK Investment Management LLP
The Investment Manager AEW UK Investment Management LLP is a
50:50 joint venture between the principals of the Investment
Manager and AEW. It 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 EUR57 billion of assets under management as
at 30 September 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 September 2017, AEW
Group managed EUR26.6 billion in value in properties of all types
located in 15 countries, with close to 400 staff.
AEW UK
Alex Short alex.short@eu.aew.com
+44(0) 207 016 4880
Laura Elkin laura.elkin@eu.aew.com
+44(0) 207 016 4869
Nicki Gladstone Nicki.Gladstone-ext@eu.aew.com
+44(0) 771 140 1021
Company Secretary
Link Company Matters Limited aewl-cosec@linkgroup.co.uk
+44(0) 139 247 7509
Temple Bar Advisory aew@templebaradvisory.com
Tom Allison +44(0) 7789 998 020
Olivia Everist +44(0) 07514 929 305
About AEW Europe
AEW is one of the world's largest real estate asset managers,
with over EUR57bn of assets under management as at 30 September
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 Investment Managers, one of the
largest asset managers in the world.
As at 30 September 2017, AEW managed EUR26.6bn of real estate
assets in Europe on behalf of a number of funds and separate
accounts. AEW has close to 400 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 EUR17.5bn of real estate across
European markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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