Change in strategy for AEW UK Core Property Fund
AEW is changing its investment strategy for its UK Core Property Fund to focus on high-income asset management opportunities.
As part of the refocus, the fund’s maximum leverage capacity will be increased to 30% of its assets and will be renamed the AEW UK Core Plus Property Fund.
AEW said the refocused fund would “seek to capitalise on market inefficiencies and acquire attractively priced and high-quality multi-sector commercial real estate at the margins of prime locations across the UK, with the aim of achieving superior investment returns over the long term”.
AEW is changing its investment strategy for its UK Core Property Fund to focus on high-income asset management opportunities.
As part of the refocus, the fund’s maximum leverage capacity will be increased to 30% of its assets and will be renamed the AEW UK Core Plus Property Fund.
AEW said the refocused fund would “seek to capitalise on market inefficiencies and acquire attractively priced and high-quality multi-sector commercial real estate at the margins of prime locations across the UK, with the aim of achieving superior investment returns over the long term”.
It aims to deliver a total return of 8% per annum.
Following the change in strategy, four assets have been acquired.
They include Harbour Island, E14, an office and retail asset in Canary Wharf, which has been bought for £18.2m – an 8.2% yield; the 12.6-acre Hythe Marine Park in Southampton, which has been acquired for £14m – a 9.2% yield; Barton Court, a 54,074 sq ft mixed-use island site in Bath, anchored by retail Anthropologie and office tenant Stone King, bought for £8.25m – a 12% yield; and 3 Queens Square in Bristol, bought for £705,000.
Richard Tanner, senior portfolio manager at AEW, said: “The high yielding acquisitions recently completed are evidence of our commitment to seeking out attractively priced properties where we can leverage our proven active management capabilities and deliver value for both investors and tenants.”
Lewis & Partners acted for AEW at Canary Wharf , with Cyril Leonard representing the vendor. HSP acted for AEW in Southampton, with Lambert Smith Hampton on the selling side. In Bath AEW was represented by Savills with Jackson Criss acting for the vendor.
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