AEW UK Long Lease REIT reveals £40m spree

By Kasmira Jefford - Friday, September 08, 2017 9:08

AEW UK Long Lease REIT embarked on a sprending spree, placing six assets under offer totalling c.£40m, in addition to one already exchanged and one completed.

The company, which floated on the London Stock Market last month, said the average weighted unexpired lease term across all eight assets is c. 30 years, with an average net initial yield of 6% and 94% of the income benefitting from growth linked to inflation.

AEW UK Long Lease REIT raised £80.5m from institutional and retail investors at its IPO in June and set out plans to substantially invest the net proceeds within nine months of listing.

The company is targeting an annual dividend of 5.5p per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation thereafter.

The news comes after AEW announced earlier this week it had made its first acquisition, after buying a Travelodge hotel and retail unit in Swindon for £6.3m. It has also exchanged on a Wet ‘n’ Wild Water Park in Royal Quays, Newcastle-upon-Tyne for £2.9m.

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