9th May 2023 16:28
AEW UK REIT PLC - real estate investment trust for UK regional commercial property - Completes sale of its industrial holding at Deeside Industrial Estate for GBP4.8 million, reflecting a capital value of GBP49 per square foot for the 96,597 square feet industrial unit known as Excel 95. Was previously acquired in July 2017 for GBP4.3 million, or around GBP45 per square foot, reflecting a 7.9% net initial yield for the completed sale on Tuesday. Says the property was previously let to Magellan Aerospace, until they vacated in July 2022, paying a GBP250,000 dilapidations settlement. The company has disposed of the vacant asset to an owner-occupier, with the price reflecting a circa 8% premium to the March 31 valuation. By disposing of the asset, the company says it has also avoided a speculative refurbishment project costing approximately GBP1 million. Following completion of the sale, AEW UK REIT will have approximately GBP9.6 million to deploy on an attractive pipeline of higher yielding assets, which it says will be more accretive to the company's earnings.
Portfolio Manager Laura Elkin says: "This disposal is yet another example of our successful strategy in action. Rather than carry out a lengthy refurbishment programme, we have taken the decision to recycle capital into attractive assets from our pipeline, which are expected to deliver a more accretive performance in the future. We expect to make further announcements in this respect in the coming months."
Current stock price: 97.50 pence, down 1.6%
12-month change: down 19%
By Greg Rosenvinge, Alliance News reporter
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