Aew Uk Long Lease Reit Share Discussion Threads

[jonwig] 22/9/2017 11:19

More progress:

AEW UK Long Lease REIT plc ("the Company") is pleased to announce the acquisition of the Wet 'n' Wild Water Park in Royal Quays, Newcastle-upon-Tyne for £2.9m, its third transaction since its IPO in June. The property comprises a purpose built indoor water park totalling 37,131 sq ft and is let to Serco Leisure Operating Ltd, a wholly owned subsidiary of Serco Plc, for an unexpired term of 22 years with annual rental uplifts linked to RPI. The acquisition reflects a net initial yield of 6.1%.

The waterpark, which was developed in 1992 and fully refurbished in 2014 at the cost of £1.5m, has a dedicated 380 space customer car park and is well positioned within the Royal Quays area, 1.5 miles south west of North Shields town centre. The property is situated immediately adjacent to Star Bowl and opposite the Royal Quays Outlet shopping centre.

The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £17.7m. It has a further eight assets under offer, with a combined value in excess of c £40m and expects to make additional announcements in the coming weeks.

The company raised £80.5m from institutional and retail investors at the IPO and at that time it stated its expectation to substantially invest the net proceeds within nine months of listing. The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation thereafter.

[jonwig] 15/9/2017 09:38

Spec - I suppose they're calculating on the basis of up to 40% LtV. At present they can probably pay 3.0 to 3.5%, though that might be higher when they want to draw it!

[spectoacc] 15/9/2017 09:25

Another purchase, with more to come, but 5% - is it really enough?

15 September 2017
15 September 2017
AEW UK Long Lease REIT acquires Camberley Premier Inn for GBP8.5m
AEW UK Long Lease REIT plc ("the Company") is pleased to announce the acquisition of the Premier Inn hotel on 12-16 Park Street, Camberley for GBP8.5m. The 43,468 sq ft hotel constructed in 2012 provides an unexpired lease term of 15 years to break and 20 years to expiry, with five yearly CPI linked reviews and has been acquired for a price reflecting a net initial yield of 5.0%. The 95-bed property occupies a prominent position on the corner of Park Road and London Road (A30) directly opposite the rear entrance to the Royal Military Academy Sandhurst.

[spectoacc] 08/9/2017 07:20

Obviously reading ADVFN:

"8 September 2017
AEW UK Long Lease REIT plc announces pipeline of GBP40m
AEW UK Long Lease REIT plc ("the Company") is pleased to announce that, in addition to the two assets, one exchanged and one completed, announced on 6 September, it has six further assets under offer, totalling c. GBP40m. The average weighted unexpired lease term across all eight assets is c. 30 years, with an average net initial yield of 6.0% and 94% of the income benefitting from growth linked to inflation. It is anticipated that further announcements will be made during September.

[spectoacc] 06/9/2017 07:23

An acquisition, at last, and another coming. Not convinced they'll invest the lot (with gearing?) within 9 months of June.

Also not overly convinced by the yields, albeit they compare very well to Linkers. Is the margin of error really there? Time will tell.

[belgraviaboy] 01/9/2017 09:07

Switched out of this into SUPR

At least they are doing something!!

[tyranosaurus] 18/8/2017 12:53

LXI have no trouble making acquisitions so why are this lot so slow ?

[speedsgh] 14/8/2017 15:19

Thanks, jonwig. LXI is not a thread that I follow.

[jonwig] 14/8/2017 14:53

Thanks - will post the link on LXI, which is the main topic of the article.

[speedsgh] 14/8/2017 14:42

James Carthew: a Reit long and winding road -

[tyranosaurus] 28/7/2017 16:18

All these REIT companies might has well use the same master prospectus with just the name and date changed.
This one will perform as well as the rest ie will be undersubscribed and in no hurry to invest the funds.

AEWL Portfolio Update 11/07/2017

There is no portfolio as they have not purchased anything.

[speedsgh] 21/7/2017 14:49

Yet another REIT coming to market. Looking to raise up to £200m...

Intention to Float -

IPO prospectus -



Triple Point Social Housing REIT plc

The Company's investment objective is to provide Shareholders with stable, long-term, inflation-linked income from a portfolio of Social Housing assets in the United Kingdom with a particular focus on Supported Housing assets. The portfolio will comprise investments in built assets and the forward funding of pre-let development assets, the mix of which will be optimised to enable the Company to pay a covered dividend increasing in line with inflation and generate an attractive risk-adjusted total return...

...Following deployment of the Net Proceeds of the Issue and associated gearing, the Company is targeting a covered dividend equal to 5 per cent. of the Issue Price per Ordinary Share1 in respect of the Company's first full financial year, to be paid quarterly and increasing annually thereafter in line with inflation...

[jonwig] 19/7/2017 10:22

speeds - yes, it's head scratching. And the biggest (LAND, BLND) are sitting on huge nav discounts (30% recently) whilst reducing investment, selling stuff and doing share buybacks.

[speedsgh] 19/7/2017 10:08

Interesting that some REITs are now struggling to raise the desired levels of capital at IPO. May be more a reflection on the perceived quality/lack of history of the companies rather than a reduction in overall demand? Quality companies with track records are still managing to get away oversubscribed fundraisings (BBOX NRR etc).

Have to say I was sceptical of Supermarket Income REIT investment proposition when I read re intention to float.

[spectoacc] 19/7/2017 07:14

Wasn't convinced either. Supermarkets seem to be over their recent hump, but as a business model the gigantic stores seem to have had their day. I'd invest if they said they were only going to buy Aldi or Lidl sites :)

[jonwig] 19/7/2017 07:08

Supermarket Income REIT raised £100m of target £200m. I don't know the ticker, but SUET would be appropriate. Dealings start 21 July. I didn't apply.

[stemis] 16/7/2017 14:58

I don't think they are looking for bargain, but secure, quality assets they can leverage and use to provide dependable income...

[spectoacc] 15/7/2017 19:52

Long leases & index-linking tho - I'd say that's pretty good.

I don't see interest rates rising (or at least, 2% would be the "new normal") but there's a lot swimming naked if they did go back to eg 5%.

[spectoacc] 14/7/2017 09:36

Going to be interesting to see what the costs of purchase are, and where (eventually) it leaves the NAV.

[speedsgh] 11/7/2017 12:07

Yes, IIRC the target size of the placing at IPO was £150m but they only achieved £80m.

jon - I wouldn't worry. Alex Short seems like a lovely lady from what I can tell :o)

[jonwig] 11/7/2017 08:22

Oops! And I sent an e-mail ... blush! :(

[spectoacc] 11/7/2017 08:06

Thanks @Mike - the blind leading the blind here :)

[yorkiemike] 11/7/2017 07:52

Guys - only £80m raised @ IPO. Are you getting confused with the RESI REIT figure of £180m mentioned in post 54? Figures in RNS seem correct to me. I hope Alex is gentle in her response!

[jonwig] 11/7/2017 07:43

Spec - yes, it's about 13%. Will they identify the actual properties some time? Most companies do this.