AEW UK Long Lease REIT PLC AEW Long Lease REIT announces pipeline of £40m (1683Q)
08 September 2017 - 4:00PM
UK Regulatory
TIDMAEWL
RNS Number : 1683Q
AEW UK Long Lease REIT PLC
08 September 2017
8 September 2017
AEW UK Long Lease REIT plc announces pipeline of GBP40m
AEW UK Long Lease REIT plc ("the Company") is pleased to
announce that, in addition to the two assets, one exchanged and one
completed, announced on 6 September, it has six further assets
under offer, totalling c. GBP40m. The average weighted unexpired
lease term across all eight assets is c. 30 years, with an average
net initial yield of 6.0% and 94% of the income benefitting from
growth linked to inflation. It is anticipated that further
announcements will be made during September.
Investment Policy
The Company's investment policy, inter alia, restricts (i) the
value of a single property and (ii) the value of assets in any
sub-sector in one geographical region, each at the time of
investment, to a maximum of 10 per cent of the gross asset value of
the Company ("Gross Asset Value"). As the investment strategy
intends to utilise leverage, the Board is of the view that these
restrictions should be applied on the basis that the full extent of
the proposed leverage has been utilised. Therefore, as a
non-material change to the investment policy of the Company and a
point of clarification, when the measure of Gross Asset Value is
used to calculate these restrictions, it will reflect an assumption
that the Company has drawdown borrowings such that these borrowings
are equal to 30 per cent of Gross Asset Value.
AEW UK Long Lease REIT plc raised GBP80.5m 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. The Company is targeting an annual dividend
of 5.5 pence per share paid quarterly, once fully invested and
levered, with an ambition to grow in line with UK inflation
thereafter. In addition to its pipeline above, the Company has
completed on one acquisition and exchanged on another with a
combined total value of c GBP9.2m.
AEW UK
Alex Short alex.short@aeweurope.com
+44(0) 207 016 4880
Laura Elkin laura.elkin@aeweurope.com
+44(0) 207 016 4869
Nicki Gladstone nicki.gladstone-ext@aeweurope.com
+44(0) 771 140 1021
Company Secretary
Capita Company Secretarial aewl-cosec@capita.co.uk
Services Limited +44(0) 139 247 7509
Temple Bar Advisory +44(0) 207 002 1510
Ed Orlebar +44(0) 7738 724 630
Tom Allison +44(0) 7789 998 020
Alycia MacAskill +44(0) 7876 222 703
About AEW UK Long Lease REIT
AEW UK Long Lease REIT plc (LSE: AEWL) aims to generate a
sustainable, secure and predictable income return, whilst at least
maintaining capital values in real terms, by investing in a
diversified portfolio of UK properties, with an attractive entry
yield, predominately in alternative and specialist sectors. It will
invest in a diverse range of sectors that are underrepresented in
institutional portfolios including leisure, healthcare, education,
hotels, student accommodation, supported living and automotive. At
its IPO on June 6 2017, AEWL raised GBP80.5m from institutional and
retail investors. At least 85% of the portfolio's leases will
contain inflation-linked rent reviews, and average initial
unexpired leases in excess of 18 years.
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team
comprising 25 individuals covering investment, asset management,
operations and strategy. It is part of AEW Global, one of the
world's largest real estate managers, with EUR60.1 billion of
assets under management as at 31 December 2016. AEW Global
comprises AEW Europe SA and AEW Capital Management L.P., a U.S.
registered investment manager. In Europe, as at 31 December 2016,
AEW Global managed EUR26.0 billion in value in properties of all
types located in 14 countries, with over 380 staff. The Investment
Manager is a 50:50 joint venture between the principals of the
Investment Manager and AEW Europe.
This information is provided by RNS
The company news service from the London Stock Exchange
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