AEW UK Long Lease REIT publishes IPO prospectus

By Paul Norman - Thursday, May 18, 2017 14:16

AEW UK Long Lease REIT has published its IPO prospectus and launched the initial issue to raise up to £150m through shares at 100p per share.

AEW said: "The company intends to carry on business as the principal company of a real estate investment trust, offering a secure, diversified and inflation-linked income return, whilst at least maintaining capital values in real terms, through exposure to alternative and specialist real estate sectors in the UK."

AEW UK Long Lease REIT 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.

Its focus will be to construct a portfolio with a weighted average unexpired lease term in excess of 18 years and inflation linkage on at least 85% of the portfolio’s gross passing rent, each at the time of investment.

The key focus will be on "capital preservation through detailed analysis and understanding of the real estate fundamentals, ensuring there is the potential for higher alternative use value and capital recovery".

It will target an annual dividend of 5.5p per share paid quarterly, once fully invested and levered, with an ambition to grow in future years in line with inflation.

The company expects to substantially invest the net proceeds of the IPO within nine months of listing.

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