Last checked at 11 Jul 2017 07:00
11 July 2017
AEW UK Long Lease REIT plc Portfolio Update
AEW UK Long Lease REIT plc is pleased to announce that it currently has four properties under offer across a range of property sectors. The combined value of the assets is £24m and represents over 30% of the net proceeds raised at the Company's successful IPO on 6 June 2017. The properties are in line with the Company's target asset profile outlined at the time of the IPO, with the focus being on alternative property sectors.
Three of the assets which the Company has so far agreed to acquire are a hotel, a gym and an ice-rink. The weighted average unexpired lease term provided by these assets is in excess of 20 years, above the portfolio's minimum target of 18 years, with an initial yield of 6.9%; 98% of the lease income from these assets is inflation-linked. A further asset is under offer in the industrial sector which provides a longer unexpired term with predominantly inflation-linked rental income.
The acquisition of these assets is expected to take place over the coming weeks and further announcements will be made in due course.
AEW UK Long Lease REIT 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.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: "We are very pleased to have secured these assets under offer following the IPO last month. We continue to see a very interesting pipeline of opportunities, and are confident we will be able to deploy the funds within the timeframe we have indicated, while maintaining a rigorous investment approach."
For further information, please contact:
AEW UK
Alex Short | alex.short@aeweurope.com |
Laura Elkin | +44(0) 207 016 4880
laura.elkin@aeweurope.com |
Nicki Gladstone | +44(0) 207 016 4869
nicki.gladstone-ext@aeweurope.com |
| +44(0) 771 140 1021
|
Company Secretary |
|
Capita Company Secretarial Services Limited | aewl-cosec@capita.co.uk +44(0) 139 247 7509
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Temple Bar Advisory Ed Orlebar Tom Allison Alycia MacAskill
| +44(0) 207 002 1510 +44(0) 7738 724 630 +44(0) 7789 998 020 +44(0) 7876 222 703
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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 the portfolio's leases will contain inflation-linked rent reviews, and average initial unexpired leases in excess of 18 years.
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 €60.1 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 €26.0 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.