AEW UK REIT PLC Sale of high-street retail asset in Portsmouth (0325P)

TIDMAEWU

RNS Number : 0325P

AEW UK REIT PLC

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 GBP3,900,000, reflecting a net initial yield of 9.9% and a capital value of GBP251 per sq ft. A sale at this price reflects a circa 22% premium to the 30 June 2023 valuation of GBP3,200,000.

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

 
 Enquiries 
 AEW UK 
 Laura Elkin                       laura.elkin@eu.aew.com 
                                   +44(0) 7917 058 337 
 Henry Butt                        henry.butt@eu.aew.com 
                                   +44(0) 7920 499 076 
 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) 7548773155 
 
 TB Cardew                         AEW@tbcardew.com 
 Ed Orlebar                        +44 (0) 7738 724 630 
 Tania Wild                        +44 (0) 7425 536 903 
 Henry Crane                       +44 (0) 7918 207 157 
 
 
   Liberum Capital 
 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 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 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 EUR84.9bn 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 EUR38.5bn of real estate assets on behalf of a number of funds and separate accounts with over 470 staff located in 10 locations.

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END

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October 09, 2023 02:00 ET (06:00 GMT)

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