AEW UK Core Property Fund Pricing Change
30 September 2016
AEW UK REIT plc
SWING TO OFFER PRICING AND REMOVAL OF DILUTION ADJUSTMENT OF AEW UK CORE PROPERTY FUND
AEW UK REIT plc (LSE: AEWU) ("the Company") announces that the AEW UK Core Property Fund (the "Core Fund"), in which it currently has an investment representing c.8% of its portfolio, has moved its single price mechanism from a bid basis back to an offer basis and removed its dilution adjustment of 5%. Both the move to offer pricing basis and the introduction of the dilution adjustment were put in place as a result of market uncertainty in the UK following the June EU referendum result.
These changes will apply to transactions in the Core Fund with effect from 3 October 2016.
This decision has been taken following the revised assessment by the Fund's Independent Pricing Sub-Committee of emerging evidence from independent valuers. The Core Fund's property portfolio valuation rose 0.2% on a like for like basis during the month of September and the Fund's independent valuers will remove their valuation uncertainty clause in their September valuation reports.
The decision to move the Core Fund pricing from offer to bid and to apply the dilution levy in July, following the referendum result, led to a revaluation of the Company's Core Fund holding as at 31 July 2016 to £8.65 million, from £10.11 million as at 30 April 2016 (being 1.25p per share). The value of the Company's holding in the Core Fund as at 31 July 2016 was 6.4% below the NAV of the Core Fund at that time.
Alex Short, Portfolio Manager, AEW UK REIT, commented:
"We have been pleased with the resilient performance of the AEW UK REIT portfolio in the weeks since the referendum, with tenant demand remaining robust across most sectors and locations. Support for the recent tap issue was encouraging and we anticipate making further announcements over the coming weeks as we invest the new capital in what look to be a range of very interesting and fruitful opportunities in the UK regions."
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Enquiries |
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AEW UK |
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Laura Elkin |
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+44(0) 20 7016 4880 |
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Nicki Gladstone |
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+44(0) 20 7016 4880 |
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Company Secretary |
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Benjamin Hanley, Capita Company Secretarial Services |
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T: 01392 477 563 |
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FTI Consulting |
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Richard Sunderland, Claire Turvey, Richard Gotla |
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T: 020 3727 1000 |
Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than £10 million), on shorter occupational leases, in strong commercial locations across the United Kingdom.
Since its IPO in May 2015, the Company has invested just over £123 million in 27 properties, including £9.75 million in AEW UK's Core Property Fund, is currently invested in office, retail, industrial and leisure assets, with a focus on active asset management, repositioning the properties and improving the quality of the income stream. Whilst occupational demand in strategic locations remains, securing tenants on shorter leases allows the Company to crystallise value through rent reviews and lease re‐gears.
The Company is currently paying a dividend of 8p per share p.a. and targets a total annual return, over the medium term, in excess of 12% on the IPO issue price, net of all fees.
Real estate investment specialist AEW UK Investment Management LLP is a joint venture between the management team, which together has an average of 25 years of real estate experience, and AEW Europe, which has €48.1 billion of real estate assets under management. AEW UK Investment Management LLP has a strong and expert asset management team, with a proven record of identifying and delivering value from real estate assets across all sectors.
This information is provided by RNS
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