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AEW UK REIT plc completed the sale of its freehold high-street retail asset in Portsmouth on October 9, 2023, for £3,900,000. This price reflected a circa 22% premium to the asset's £3,200,000 valuation as of June 30, 2023, achieving a net initial yield of 9.9% and a capital value of £251 per sq ft.
| Date | 9 Oct 2023 |
| Time | 07:00:10 |
| Category | Disposals |
| ID | 0325P |
09 October 2023
AEW UK REIT plc
Sale of high-street retail asset in Portsmouth
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce that it has completed the sale of its freehold high-street retail holding at 208-220 Commercial Road and 7-13 Crasswell Street, Portsmouth, for £3,900,000, reflecting a net initial yield of 9.9% and a capital value of £251 per sq ft. A sale at this price reflects a circa 22% premium to the 30 June 2023 valuation of £3,200,000.
Following the completion of two new lettings to Kokoro and Specsavers earlier this year, the property is now fully let. This, coupled with the risk of the main tenant, Nationwide Building Society ("Nationwide"), being significantly overrented, prompted the decision to sell. The value of the asset is likely to deteriorate as Nationwide's lease becomes shorter, with the threat of the tenant leaving on expiry in 2029 creating the possibility of a long-term void.
Commenting on the sale, Laura Elkin, Portfolio Manager of AEW UK REIT said: "We are pleased to have sold this holding for a healthy premium to valuation, having completed the asset management strategy, and therefore maximised value. Going forward, the asset presents a potential risk to the Company's shareholders, which further justifies a sale at this point in time. The Company's focus for the deployment of capital continues to be on the consideration of further accretive investment opportunities, alongside re-investment into the existing portfolio where capex is needed in order to drive future performance gains".
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 |
+44 (0) 7918 207 157 |
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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.