Last checked at 16 Oct 2017 07:00
16 October 2017
AEW UK Long Lease REIT acquires Wandsworth Road Pure Gym for £4.4m
AEW UK Long Lease REIT plc ("the Company") is pleased to announce the completed acquisition of 212 Wandsworth Road, London for £4.4m. The property, which is fully let to Pure Gym Limited at a low passing rent of £11.60 per sq ft, provides an unexpired lease term of 10.2 years to break and 15.1 years to expiry, with five yearly RPI linked reviews. The acquisition price reflects a net initial yield of 5.1%.
The 19,900 sq ft property, constructed in 2012, is situated within close proximity to the new Nine Elms Northern Line London Underground station which is planned to open in 2020. In addition the Borough of Lambeth is currently undergoing extensive redevelopment as part of a 561 acre regeneration plan to transform the area into a residential, cultural and business quarter, increasing employment, residents and investment in the local area.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "We are very pleased to have completed this latest acquisition in a key inner London growth area. One of the property's particular attractions is its comparatively low passing rent which provides value add opportunities for the future. We continue to see good momentum in the coming months and expect to announce further acquisitions in the near future."
The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £22.1m. In addition to this, the Manager has a further 6 assets under offer 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.
The Company entered the REIT regime with effect from 13 October 2017 following the submission of the application to HM Revenue and Customs.
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 6 June 2017, AEWL raised £80.5m from institutional and retail investors. At least 85% of gross passing rent from the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years at the time of investment.
About AEW UK Investment Management LLP
AEW UK Investment Management LLP is a 50:50 joint venture between the Management Team and AEW. It employs a well-resourced team comprising 25 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €58.5 billion of assets under management as at 30 June 2017. 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 30 June 2017, AEW Group managed €26.0 billion in value in properties of all types located in 15 countries, with over 380 staff.
AEW UK
Alex Short | alex.short@eu.aew.com |
Laura Elkin | +44(0) 207 016 4880
laura.elkin@eu.aew.com |
Nicki Gladstone | +44(0) 207 016 4869
Nicki.Gladstone-ext@eu.aew.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 Lucy Featherstone
| aew@templebaradvisory.com +44(0) 7738 724 630 +44(0) 7789 998 020 +44(0) 7789 374 663
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About AEW
AEW is one of the world's largest real estate asset managers, with €58.5bn of assets under management as at 30 June 2017. AEW has over 600 employees, with its main offices located in Boston, London, Paris and Hong Kong and offers a wide range of real estate investment products including comingled funds, separate accounts and securities mandates across the full spectrum of investment strategies. AEW represents the real estate asset management platform of Natixis Global Asset Management, one of the largest asset managers in the world.
As at 30 June 2017, AEW managed €26.0bn of real estate assets in Europe on behalf of a number of funds and separate accounts. AEW has over 300 employees based in 10 offices across Europe and has a long track record of successfully implementing core, value-add and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of over €17.5bn of real estate across European markets.
LEI: 213800MPBIJS12Q88F71