10 June 2022

AEW UK REIT Plc

Acquisition of Railway Station Retail Park, Dewsbury

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce the acquisition of the 6.04 acre Railway Station Retail Park in Dewsbury for a price of £4,700,000. The purchase price reflects a low capital value of only £82 per sq ft and provides an attractive net initial yield of 9.4%.

The park is fully let with a low average passing rent of £8.28 per sq ft, which the Investment Manager believes provides strong potential for rental growth. Tenants include Sports Direct, Mecca Bingo, Fieldrose Ltd, trading as KFC, and the Danish furniture retailer, Jysk.

The park occupies a prominent location on the edge of the town centre within an established retail and leisure area. Neighbouring occupiers include Sainsburys, Aldi, Matalan, Pets at Home and Iceland as well as a council operated library and sports facility. Dewsbury has a tight supply of retail warehousing stock, with no current vacancies within the town.

Commenting on the sale, Laura Elkin, Portfolio Manager of AEW UK REIT said, "This latest acquisition supports our view that the current market continues to provide investment opportunities that deliver dividend accretive income streams while also providing future potential for capital growth. Our work undertaken on the tenants of the park has shown that they trade well from the location and we expect an attractive level of income to be sustained".

ENDS

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.