Alternative Inc Regulatory News (AIRE)

1 November 2017

AEW UK Long Lease REIT plc acquires care homes in Solihull and Brough for £10.3m

AEW UK Long Lease REIT plc ("the Company") is pleased to announce it has acquired two residential care home properties in the West Midlands and East Riding for £10.3m. Both were acquired from 90 North Real Estate Partners LLP ("90 North") and are let to Prime Life Limited, a care services provider operating a total of 57 care homes, based mainly in Lincolnshire and the East Midlands.

The Lyndon Croft Care Centre, located on Ulleries Road, Solihull, was acquired for £6.2m. It provides 52 beds for those with needs associated to old age and dementia. The property provides an unexpired lease term of 31 years. The acquisition price reflects a net initial yield of 5.5%.

Westerlands Care Village, located on Elloughton Road, Brough, was purchased for £4.1m and comprises 62 beds in two adjacent homes. Elloughton House provides residential and nursing care as well as care of those with dementia needs. Brough House provides specialist memory care for high dependency residents. The acquisition price reflects a net initial yield of 6.0% and the properties have an unexpired lease term of 31 years.

90 North was advised by Gerald Eve. AEW was advised by Knight Frank.

Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "These latest acquisitions demonstrate our commitment to investing in specialist, underrepresented sectors in the property market. Care homes such as these, with their long leases and sustainable income profile, are important additions to AEW UK Long Lease REIT's investment portfolio."

The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £41m. In addition to this, the Manager has a further 4 assets under offer and expects to make additional announcements in the coming weeks.

AEW UK Long Lease REIT plc 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. 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.

ENDS

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 £80.5m from institutional and retail investors. At least 85% of gross passing rent from the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years at the time of investment.

About AEW UK Investment Management LLP

AEW UK Investment Management LLP is a 50:50 joint venture between the Management Team and AEW. It employs a well-resourced team comprising 25 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with €58.5 billion of assets under management as at 30 June 2017. AEW Group comprises AEW SA and AEW Capital Management L.P., a U.S. registered investment manager and their respective subsidiaries. In Europe, as at 30 June 2017, AEW Group managed €26.0 billion in value in properties of all types located in 15 countries, with over 380 staff.

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AEW UK

About AEW

AEW is one of the world's largest real estate asset managers, with €58.5bn of assets under management as at 30 June 2017. AEW has over 600 employees, with its main offices located in Boston, London, Paris and Hong Kong and offers a wide range of real estate investment products including comingled funds, separate accounts and securities mandates across the full spectrum of investment strategies. AEW represents the real estate asset management platform of Natixis Global Asset Management, one of the largest asset managers in the world.

As at 30 June 2017, AEW managed €26.0bn of real estate assets in Europe on behalf of a number of funds and separate accounts. AEW has over 300 employees based in 10 offices across Europe and has a long track record of successfully implementing core, value-add and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of over €17.5bn of real estate across European markets.