AEW buys Chiswick gym

By James Wallace - Thursday, April 12, 2018 11:59

AEW UK Long Lease REIT has bought a gymnasium investment in Chiswick, West London, for £2.2m.

The 5,918 sq ft purpose-built gym is situated over two levels and forms part of a larger residential based development at 500 Chiswick High Road. The asset is held on a virtual freehold basis and is leased to Snap Fitness for a term of 15 years to expiry with no breaks and provides 5 yearly inflation linked reviews. The transaction reflects a net initial yield of 5.5%.

Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "This new acquisition in an affluent London location is a fantastic addition to our portfolio, with its 15 years of guaranteed inflation linked income. The central Chiswick location should help to drive demand both for the current use and for alternative uses in the future, therefore helping to ensure the long term preservation of investor's capital."

The transaction increases the total amount invested by AEW UK Long Lease REIT plc since listing to c.£95m. In addition to this, the Manager has a further 2 assets under offer and expects to make additional announcements in the coming weeks.

AEW UK Long Lease REIT 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. On the 8 January 2018, the Group announced that it had entered into a new £30m term loan facility with Canada Life Investments. The term facility is up to 35% loan to property value, provided on a portfolio basis.

The company entered the REIT regime with effect from 13 October 2017.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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