AEW UK Investment Management is to launch a £150m REIT on the stock exchange that will specialise in long-leased alternative assets.
AEW said the AEW UK Long Lease REIT would invest in a range of sectors that are underrepresented in institutional portfolios. It said these include leisure, healthcare, education, hotels, student accommodation, supported living and automotive.
It aims to create a portfolio with an unexpired lease term of 18 years and with 85% of rent linked to inflation. It said it had identified a pipeline of opportunities that would allow it to substantially invest money from the IPO within nine months of listing.
A prospectus will be published in mid-May, with the closure of the placing at the end of May.
Steve Smith will be chairman of the new REIT, while Alex Short will be portfolio manager of the company. Short is currently manager of the AEW UK REIT.
Short said: “We have a depth of expertise and proven insights that will allow us to rapidly create a diversified portfolio of properties that are less widely invested in by institutional investors. Our target assets are characterised by having long, inflation-linked leases, where we are also able to preserve capital value through detailed analysis and understanding of the real estate fundamentals.”
The proposed listing follows in the footsteps of Nick Leslau’s Secure Income REIT which owns £1.6bn of hospitals, hotels and theme parks let on long leases and the £138m launch of LXI REIT in February which also focuses on long-term income.
Fidante Capital is acting as sponsor, financial adviser and sole bookrunner to the company. Kepler Partners is acting as distribution agent. Solid Solutions Associates is acting as intermediaries offer adviser.
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