AEW UK REIT PLC VALUATION OF HOLDING IN AEW UK CORE PROPERTY FUND (6063M)
15 October 2016 - 12:13AM
UK Regulatory
TIDMAEWU
RNS Number : 6063M
AEW UK REIT PLC
14 October 2016
AEW UK REIT plc
SWING TO OFFER PRICING AND REMOVAL OF DILUTION ADJUSTMENT OF AEW
UK CORE PROPERTY FUND
AEW UK REIT plc (LSE: AEWU) ("the Company") announces that the
AEW UK Core Property Fund (the "Core Fund"), in which it currently
has an investment representing c.8% of its portfolio, has moved its
single price mechanism from a bid basis back to an offer basis and
removed its dilution adjustment of 5%. Both the move to offer
pricing basis and the introduction of the dilution adjustment were
put in place as a result of market uncertainty in the UK following
the June EU referendum result.
These changes will apply to transactions in the Core Fund with
effect from 3 October 2016.
This decision has been taken following the revised assessment by
the Fund's Independent Pricing Sub-Committee of emerging evidence
from independent valuers. The Core Fund's property portfolio
valuation rose 0.2% on a like for like basis during the month of
September and the Fund's independent valuers will remove their
valuation uncertainty clause in their September valuation
reports.
The decision to move the Core Fund pricing from offer to bid and
to apply the dilution levy in July, following the referendum
result, led to a revaluation of the Company's Core Fund holding as
at 31 July 2016 to GBP8.65 million, from GBP10.11 million as at 30
April 2016 (being 1.25p per share). The value of the Company's
holding in the Core Fund as at 31 July 2016 was 6.4% below the NAV
of the Core Fund at that time.
Alex Short, Portfolio Manager, AEW UK REIT, commented:
"We have been pleased with the resilient performance of the AEW
UK REIT portfolio in the weeks since the referendum, with tenant
demand remaining robust across most sectors and locations. Support
for the recent tap issue was encouraging and we anticipate making
further announcements over the coming weeks as we invest the new
capital in what look to be a range of very interesting and fruitful
opportunities in the UK regions."
Enquiries
AEW UK
Laura Elkin laura.elkin@aeweurope.com
+44(0) 20 7016 4880
Nicki Gladstone nicki.gladstone-ext@aeweurope.com
+44(0) 20 7016 4880
Company Secretary
Benjamin Hanley, Benjamin.hanley@capita.co.uk
Capita Company Secretarial
Services
T: 01392 477 563
FTI Consulting
Richard Sunderland, Claire aewuk@fticonsulting.com
Turvey, Richard Gotla
T: 020 3727 1000
Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total
return to shareholders by investing predominantly in smaller
commercial properties (typically less than GBP10 million), on
shorter occupational leases, in strong commercial locations across
the United Kingdom.
Since its IPO in May 2015, the Company has invested just over
GBP123 million in 27 properties, including GBP9.75 million in AEW
UK's Core Property Fund, is currently invested in office, retail,
industrial and leisure assets, with a focus on active asset
management, repositioning the properties and improving the quality
of the income stream. Whilst occupational demand in strategic
locations remains, securing tenants on shorter leases allows the
Company to crystallise value through rent reviews and lease
re--gears.
The Company is currently paying a dividend of 8p per share p.a.
and targets a total annual return, over the medium term, in excess
of 12% on the IPO issue price, net of all fees.
Real estate investment specialist AEW UK Investment Management
LLP is a joint venture between the management team, which together
has an average of 25 years of real estate experience, and AEW
Europe, which has EUR48.1 billion of real estate assets under
management. AEW UK Investment Management LLP has a strong and
expert asset management team, with a proven record of identifying
and delivering value from real estate assets across all
sectors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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