The latest real-estate investment trust (Reit) to float on the London Stock Exchange is AEW UK Long Lease REIT, which will have AEW UK acting as investment manager. As its name suggests, the emphasis will be on acquiring a portfolio of income-generating assets with long unexpired leases of around 18 years, over double the IPD benchmark average.
The offer is expected to raise £150m, with an issue price of 100p per share and a targeted dividend of 5.5p per share. In a departure from the norm, the offer will also be open to retail investor. Applications are due in by 30 May, with dealing expected to start on 6 June.
No single asset will represent more than 10 per cent of the initial capital raised, and average lot sizes are expected to be nearer £8m. AEW aims to invest in a range of asset classes, including leisure, healthcare, hotels and student accommodation, with at least 85 per cent of the gross passing rent linked to inflation. Operating through AEW's network of agents, a pipeline of investment opportunities has already been established, and net proceeds are expected to be put to work in the first nine months.
