AEW UK REIT is looking to raise up to £60m in an issue of new shares.
The company is targeting £40m of new shares, with an option to increase it to £60m depending on demand and how quickly the directors believe the issue will be deployed.
Shares will be issued at 100.5p per share – a 1% discount to the price at close on 27 September and a 5.9% premium on its NAV per share.
AEW said it has identified a strong pipeline of assets, which fit with its income-focused strategy.
It invests in a diversified portfolio of small, high-yielding commercial property across the UK. To date the company has £143.7m of investments across 32 properties.
Mark Burton, non-executive chairman of AEW UK REIT, said: “The existing portfolio continues to perform well, enabling the company to pay an annualised dividend of 8p per share.
“AEW UK Investment Management has identified a strong pipeline of opportunities that fit our criteria among smaller commercial properties with the potential for asset management improvements, to the potential benefit of new and existing investors.”
Results of the issue will be announced on 20 October.
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