AEW UK Long Lease REIT PLC Intention to raise new equity (1574B)
08 January 2018 - 6:00PM
UK Regulatory
TIDMAEWL
RNS Number : 1574B
AEW UK Long Lease REIT PLC
08 January 2018
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, CANADA, JAPAN,
AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR ANY
OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
This announcement is not an offer to sell, or a solicitation of
an offer to acquire, securities in the United States or in any
other jurisdiction. Neither this announcement nor any part of it
shall form the basis of or be relied on in connection with or act
as an inducement to enter into any contract or commitment
whatsoever.
AEW UK LONG LEASE REIT PLC
8 January 2018
Investment Update, New Bank Facility and Proposed Issue of New
Equity
AEW UK Long Lease REIT plc (the "Company") raised GBP80.5
million from institutional and retail investors at its IPO in June
2017 via an Initial Placing, Offer for Subscription and
Intermediaries Offer, under a Share Issuance Programme of up to
GBP300 million.
At the time, the Company stated its expectation to invest
substantially all the net proceeds of the IPO within nine months of
listing by investing in alternative and specialist real estate
sectors in the UK to offer a secure, diversified and
inflation-linked income return, whilst at least maintaining capital
values in real terms. The Company is pleased to announce that GBP76
million (which includes the acquisition costs) has now been
deployed.
New Bank Facility
The Company further announces that it has entered into a new
GBP30 million 8 year fixed loan (to 20 October 2025) with Canada
Life Investments. The term facility is up to 35% loan to property
value, provided on a portfolio basis.
Investment Update
AEW UK Investment Management LLP (the "Investment Manager") has
seven properties totalling c. GBP30 million under offer on behalf
of the Company, which are expected to complete by the end of
January 2018. Completing on these properties (including the
acquisition costs) will result in full deployment of the net IPO
proceeds, and GBP30 million drawn under the Company's new loan
facility.
In addition, the Investment Manager has a further pipeline of
four properties totalling GBP16.3 million under offer on behalf of
the Company in the leisure, pub and hotel sectors, which are
expected to complete during February and March 2018. The Investment
Manager is also engaged in active due diligence on a pipeline of
assets in excess of GBP50 million.
Proposed Issue of New Equity
In light of the above pipeline of acquisitions, the Company is
now seeking to raise a target amount of GBP35 million by way of a
placing, offer for subscription and intermediaries offer (the
"Issue") under its Share Issuance Programme. The amount of the
Issue may be increased if the Directors are satisfied that the net
proceeds can be deployed with a view to minimising the effect of
cash drag on the existing shares. In addition, the Directors may
reduce the size of the Issue if the pipeline of investments changes
prior to the closing of the Issue. The Directors currently expect
the Issue to close in early February 2018, subject to prevailing
market conditions.
The net proceeds from the Issue will be used to acquire a
diversified portfolio of long lease properties predominantly in
alternative and specialist real estate sectors in line with the
Company's investment policy. Based on the pipeline of deals, the
Investment Manager expects to place further assets under offer over
the coming weeks with an expectation of fully investing the net
proceeds of the Issue by the end of April 2018.
The Company is targeting an annual dividend of 5.5 pence per
share, paid quarterly, with effect from the financial year
commencing 1 July 2018, with an ambition to grow this in line with
UK inflation thereafter. New shares will not be eligible for the
dividend payable in respect of the period from 1 October 2017 to 31
December 2017.
The price of the new shares to be issued pursuant to the Issue
will be set by reference to the net asset value ("NAV") per share
as at 31 December 2017 and the share price at the last practicable
date prior to the publication of the Securities Note in relation to
the Issue (the "Securities Note").
Further details of the Issue, including definitive timing and
the issue price, will be announced on the publication of the
Securities Note which, subject to receipt of regulatory approvals
and prevailing market conditions, is expected to be before the end
of January 2018.
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
AEW UK Investment Management
LLP
Alex Short
Laura Elkin 020 7016 4880
Fidante Capital
Katie Standley
Nick Donovan 020 7832 0900
Media Enquiries: 020 7930 0777
TB Cardew (Financial PR advisor) aew@tbcardew.com
Ed Orlebar 07738 724630
Tom Allison 07789 998020
Lucy Featherstone 07789 374663
Company Secretary 01392 477509
Link Company Matters Limited aewl-cosec@linkgroup.co.uk
LEI: 213800MPBIJS12Q88F71
This information is provided by RNS
The company news service from the London Stock Exchange
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