The future of AEW UK Long Lease REIT is hanging in the balance after its board announced it was reviewing its options.
The move comes after the collapse of the REIT’s largest tenant, Meridian Metal Trading, into administration.
The group said: “In view of the sub-scale size of the group, its performance since IPO, and the recent news in respect of Meridian Metal Trading, the board is reviewing the options for the future of AEWL.”
“The board will seek to achieve value for shareholders either by expanding the group’s equity and asset base to achieve full dividend cover, considering offers from interested parties, or by selling the group’s portfolio and returning funds to shareholders.
“Ultimately, after all options have been considered, the board may decide to continue to pursue the group’s existing strategy with AEW UK Investment Management.”
When the fund was listed on the London Stock Exchange in June 2017, AEWL raised £80.5m from institutional and retail investors.
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