LONDON (ShareCast) - (ShareCast News) - Real estate investment trust AEW Long Lease REIT reported on Monday it had completed the acquisition of a property in the London Borough of Lambeth for £4.4m, reflecting a net initial yield of 5.1%.
The property, said to be fully let to Pure Gym at a low passing rent of £11.60 per square foot, sat in an investment-catch area, the Borough of Lambeth, 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.

It also borders the Nine Elms Northern Line London Underground station, planned to open in 2020.

According to the company, the transaction took the total amount invested by AEW UK since June to £22.1m.

At its June IPO the company raised £80.5m from institutional and retail investors, telling investors it intended to invest the majority of the net proceeds within nine months of listing, while targeting an annual dividend of 5.5 pence per share paid quarterly which it aimed to grow in line with UK inflation once fully invested and levered.

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