AEW UK Long Lease REIT has scrapped the £35m share issue it announced last week because of volatility in the market.
The company had planned to raise up to £35m in order to pursue new investment opportunities and enhance its NAV.
However, global volatility on the stock market has jumped in the past week, and the FTSE 100 at the time of writing is down 7.5% from one month ago.
Meanwhile, the Dow Jones in the US was down 1,000 points for a second time in a single week, reflecting a 10.4% loss on highs in late January.
Steve Smith, chairman of AEW UK Long Lease REIT, said: “Whilst we are disappointed that we have had to withdraw the issue at the current time, as a board we believe strongly in the company’s investment proposition.
“Attractive investment opportunities continue to exist across a range of property sectors, as seen from the pipeline assets identified by the company’s investment manager, and we look forward to coming back to the market when conditions are more stable.”
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