Last checked at 15 Sep 2017 09:24
15 September 2017
AEW UK Long Lease REIT acquires Camberley Premier Inn for £8.5m
AEW UK Long Lease REIT plc ("the Company") is pleased to announce the acquisition of the Premier Inn hotel on 12-16 Park Street, Camberley for £8.5m. The 43,468 sq ft hotel constructed in 2012 provides an unexpired lease term of 15 years to break and 20 years to expiry, with five yearly CPI linked reviews and has been acquired for a price reflecting a net initial yield of 5.0%. The 95-bed property occupies a prominent position on the corner of Park Road and London Road (A30) directly opposite the rear entrance to the Royal Military Academy Sandhurst.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "We're delighted, further to our announcement last week, with the successful acquisition of a second hotel and in particular in this affluent, south east location. This is in line with our strategy to invest in properties for which the investment is strongly under pinned by the alternative use value, which in this case is residential, subject to planning consent. We continue to see a robust supply of opportunity in a diverse range of property sectors and as such our portfolio pipeline remains strong."
This announcement follows the recent acquisition of a Travelodge hotel and Salvation Army centre in Swindon for £6.3m, along with the exchange of a Wet 'n' Wild Water Park in Newcastle-upon-Tyne for £2.9m. The company has a further five assets under offer, with a combined value in excess of c £30m and expects to make additional announcements in the coming weeks.
AEW UK Long Lease REIT plc raised £80.5m 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 thereafter.
AEW UK
Alex Short | alex.short@aeweurope.com |
Laura Elkin | +44(0) 207 016 4880
laura.elkin@aeweurope.com |
Nicki Gladstone | +44(0) 207 016 4869
nicki.gladstone-ext@aeweurope.com |
+44(0) 771 140 1021
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Company Secretary | |
Capita Company Secretarial Services Limited | aewl-cosec@capita.co.uk +44(0) 139 247 7509
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Temple Bar Advisory Ed Orlebar Tom Allison Alycia MacAskill
| +44(0) 207 002 1510 +44(0) 7738 724 630 +44(0) 7789 998 020 +44(0) 7876 222 703
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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 June 6 2017, AEWL raised £80.5m from institutional and retail investors. At least 85% of the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years.
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team comprising 25 individuals covering investment, asset management, operations and strategy. It is part of AEW Global, one of the world's largest real estate managers, with €60.1 billion of assets under management as at 31 December 2016. AEW Global comprises AEW Europe SA and AEW Capital Management L.P., a U.S. registered investment manager. In Europe, as at 31 December 2016, AEW Global managed €26.0 billion in value in properties of all types located in 14 countries, with over 380 staff. The Investment Manager is a 50:50 joint venture between the principals of the Investment Manager and AEW Europe.