Focused on the future of real estate

Strategy

AEWU invests in commercial properties across all sectors in attractive locations with low levels of supply.

AEWU uses value investment principles to identify mispriced assets across all areas of the market through various market cycles.


We typically buy:

  • Net initial yields at purchase between 7-10%.
  • Low capital values compared to alternative use values.
  • Low passing rents to provide optionality and growth.
  • Shorter occupational leases as lease events can create value add opportunities.
  • Assets under £20m in size.

We actively asset manage properties to*:

  • Grow income streams.
  • Lengthen and improve tenant leases.
  • Add value to assets using the planning system.
  • Refurbish properties, where needed.
  • Improve ESG credentials.

*Individual business plan actions are asset specific

Month Revenue
Jun-20 141.0
Sep-20 143.1
Dec-20 151.0
Mar-21 159.3
Jun-21 175.3
Sep-21 183.4
Dec-21 193.7
Mar-22 207.1
Jun-22 221.6
Sep-22 217.0
Dec-22 190.3
Mar-23 195.0
Jun-23 201.5
Sep-23 203.4
Dec-23 202.5
Mar-24 204.8
Jun-24 215.1
Sep-24 225.6
Dec-24 231.7
Mar-25 236.1
Month Revenue2
Jun-20 125.3
Sep-20 125.4
Dec-20 128.3
Mar-21 131.8
Jun-21 138.1
Sep-21 145.1
Dec-21 155.1
Mar-22 165.2
Jun-22 175.3
Sep-22 167.9
Dec-22 143.2
Mar-23 142.6
Jun-23 142.1
Sep-23 141.5
Dec-23 136.7
Mar-24 137.6
Jun-24 136.7
Sep-24 134.1
Dec-24 113.1
Mar-25 114.2

This allows us to:

Maximise Income
Dividend of 2p per share per quarter consistently paid since Q1 2016

Unlock Capital Upside
Annualised 11.2% five-year total property return to 31 March 2025.


Case Studies:

Eastpoint Business Park, Oxford:
Eastpoint Business Park, Oxford:
  • Acquired in May 2015 for £8.2m, providing an attractive net initial yield in excess of 9%.
  • Sale of the property for £29.0m in August 2022, crystallising a significant profit, exceeding the acquisition price by 254%.
  • The sale was realised following the culmination of a multi-year business plan, which included the signing of a 25-year lease in 2018 with a specialist healthcare provider.
  • The lease provided for five-yearly compounded rental uplifts in line with RPI, which increased the asset’s value by £2.0m.
  • As a condition of this letting, the Investment Manager sought planning consent for change of use away from the asset’s existing office use, setting a precedent for healthcare and life science use in the location.
  • The asset delivered an IRR of 22% during its hold period.
Langthwaite Grange, South Kirkby & Wella Warehouse, Basingstoke:
  • Acquired in 2015 and 2016 respectively, for a combined acquisition price of £9.2m, reflecting net initial yields of 11% and 9%.
  • Combined sales of the properties for £16.7m as part of a larger portfolio crystallised a significant profit, exceeding the combined acquisition price by 82%.
  • Sales of the properties were realised after renewing all their leases to 2025 at annual rents ranging from 12-13% above ERV.
Langthwaite Grange, South Kirkby & Wella Warehouse, Basingstoke:
Next, Bromley
Next, Bromley
  • Acquired in November 2022 for £5.3m, representing a strong 8.7% net initial yield and low capital value of £101 per sq ft.
  • The asset occupies a prominent high street position in a strong location.
  • Single-let to Next Holdings Limited, a strong household name tenant.
  • The tenant had recently undertaken a comprehensive store re-fit prior to acquisition and are known to trade strongly from the location.
  • The purchase price is underpinned by the value of the land for residential redevelopment.

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AEW UK REIT plc

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