London Stock Exchange welcomes AEW UK Long Lease REIT plc to the Main Market
London Stock Exchange today welcomes AEW UK Long Lease REIT plc to the premium listing segment of the Official List and to trading on the Main Market for listed securities. The Company, trading under the ticker "AEWL", aims to deliver a secure, diversified and inflation-linked income return through exposure to alternative and specialist real estate sectors in the UK, whilst at least maintaining capital values in real terms.
AEWL 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. These investments will be diversified across geographies, properties and tenants. Target assets are characterised by having long, inflation linked leases, where the Company is able to preserve capital value through detailed analysis and understanding of the real estate fundamentals.
The Company intends to declare quarterly dividends, targeting an annual dividend of 5.5 pence per Share, once proceeds are fully invested and levered, with an ambition to grow in future years in line with inflation.
AEW UK Investment Management LLP, the Investment Manager, has an experienced team with a proven track record in both long lease funds and REITs with an established pipeline of origination for long lease assets. They form part of AEW Global, one of the world's largest real estate managers, with more than €60 billion of assets under management.
Steve Smith, Chairman of the Company commented:
"We are pleased with the response we have received to our initial public offering from both institutional and retail investors. We believe our strategy of investing in sectors that are underrepresented in institutional portfolios is a strong one, and we are now well placed to capitalise on our strong pipeline of current investment opportunities. The support we have received from our new shareholders is testament to the management team’s expertise and experience, and we look forward to delivering the secure, diversified and sustainable income return that our investors are seeking."
Alex Short, Director of the Investment Manager and Portfolio Manager of the Company, said:
"We are very excited about the prospects of the AEW UK Long Lease REIT. Given the advanced pipeline of opportunities we would anticipate being able to invest the net proceeds of the Initial Issue ahead of the indicated schedule, as we focus on constructing a portfolio of assets with long, inflation linked leases, while also maintaining capital values in real terms. We are very much looking forward to working with our new shareholders and seeing them benefit from this exposure to alternative and specialist real estate sectors in the UK."
Fidante Capital acted as Sponsor, Financial Adviser and Sole Bookrunner to the Company. Kepler Partners LLP acted as Distribution Agent. Solid Solutions Associates acted as Intermediaries Offer Advisor.