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AEW UK REIT plc completed the sale of its 30,262 sq ft industrial holding at Unit 1, Clarke Road, Milton Keynes, on March 20, 2023. The property was sold for £2,750,000, reflecting a 6.3% net initial yield. This sale exceeded the 31 December 2022 valuation of £2,580,000 by circa 6.6% and the October 2015 acquisition price of £1,526,000 by circa 80.2%, resulting in approximately £7.5 million for the Company.
| Date | 20 Mar 2023 |
| Time | 07:00:02 |
| Category | Disposals |
| ID | 4220T |
20 March 2023
AEW UK REIT plc
Sale of Unit 1, Clarke Road, Milton Keynes
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that it has completed the sale of its industrial holding at Clarke Road, Milton Keynes, for £2,750,000 (circa £91 per sq ft), reflecting a 6.3% net initial yield (NIY).
The 30,262 sq ft industrial unit was acquired in October 2015 for £1,526,000 (circa £50 per sq ft), reflecting an 8.3% NIY. Since acquisition, the property has been re-let to FMG Repair Services Limited, with a guarantor from Northgate Vehicle Hire, on a 10-year lease, with a 5-year tenant break option. By securing a stronger covenant on a longer lease, the sale realises significant profit, exceeding the 31 December 2022 valuation of £2,580,000 by circa 6.6%, and the price paid at acquisition by circa 80.2%.
After completion of the sale, the Company will have approximately £7.5 million to deploy on an attractive pipeline of higher yielding assets which will be more accretive to the Company's earnings.
Laura Elkin, Portfolio Manager, AEW UK REIT plc, commented: "Clarke Road has performed well, delivering excellent returns to AEWU shareholders since original investment. The value created through completion of the new letting presented an opportunity to crystallise the asset's strong performance, with the intention of reinvesting the proceeds into higher yielding opportunities and, as such, we expect to make further purchase announcements in the coming months."
ENDS
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Enquiries |
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AEW UK |
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Laura Elkin |
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+44(0) 7917 058 337 |
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Henry Butt |
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+44(0) 7920 499 076 |
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Nicki Gladstone |
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+44(0) 7711 401 021 |
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Company Secretary |
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Link Company Matters Limited |
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+44(0) 7548773155 |
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TB Cardew |
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Ed Orlebar |
+44 (0) 7738 724 630 |
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Tania Wild |
+44 (0) 7425 536 903 |
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Henry Crane
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+44 (0)7918 207157 |
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Liberum Capital |
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Darren Vickers / Owen Matthews |
+44 (0) 20 3100 2222 |
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 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 €84.9bn of assets under management as at 31 December 2022. 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 2022, AEW Group managed €38.5bn of real estate assets on behalf of a number of funds and separate accounts with over 470 staff located in 10 locations.