Aew Uk Long Lease Reit Share Discussion Threads

[speedsgh] 13/12/2017 08:54

Results of the £250 target issue for the Aberdeen Standard European Logistics Income IPO are scheduled to be released today with first day of dealings on Friday (15/12). Will be interest to see how that has fared in comparison to the Aviva REIT which has been pulled for now.

[spectoacc] 13/12/2017 07:19

Pity, I thought the Aviva one was a good addition/good idea.

[jonwig] 13/12/2017 07:13

The new Aviva REIT has cancelled its float. Probably applicants will have to wait a while before their money is returned. How many holders of this sold in order to apply?
(One, at least!)

[jonwig] 01/12/2017 14:49

@ hiddendepths - Yes, I read his article. But holding both SGRO and BBOX I'm not keen to add some close correlation.

As for looking at similar stocks, I think your point is inevitable. Although we've probably both looked at lots, the choice of real value is a bit limited. (Though I'm in some sectors where the Corbyn factor has featured.)

(BTW, when typing, capitalise one or more of h t t p to work around.)

[hiddendepths] 01/12/2017 14:44

btw - looking in here because it's falling back on patchy selling. Was wondering if this is an opportunity but think I'll leave it for now.

[hiddendepths] 01/12/2017 14:23

Ian Cowie is raving about ASELI fwiw.

I'm gradually building up a portfolio of low beta stocks for one of my pensions. jonwig seems to crop up on many of the boards of shares I've been looking at for this fund! Got 10 so far and 15 to go.

Change hxxp to http - you know how it works!


hxxp://citywire.co.uk/investment-trust-insider/news/ian-cowie-why-i-m-raving-about-new-warehouse-fund/a1073072?ea=1063970&re=50928&utm_source=BulkEmail_Investment+Trust+Insider+Weekly&utm_medium=BulkEmail_Investment+Trust+Insider+Weekly&utm_campaign=BulkEmail_Investment+Trust+Insider+Weekly

[spectoacc] 24/11/2017 10:58

Thanks @jonwig - market maybe turning if Aviva REIT not getting much interest beyond me & you ;)

[jonwig] 24/11/2017 10:26

@ Spec - from what I read, the M7 was a bit specialised: run-down properties for refurbishment, I think.

I've just heard from a broker that the new Aviva REIT hasn't received much interest from them. Having sold AEWL to apply for it, I could end up buying this one back!

[spectoacc] 24/11/2017 10:01

Interesting re M7:

" UPDATE ON IPO
M7 Multi-Let REIT plc, a newly established closed-ended investment company, announces that it has decided not to proceed with its planned Initial Public Offering at the current time.
The Company received an encouraging response from prospective investors and the process has resulted in a number of these providing private funding to acquire the initial portfolio of properties ("Initial Portfolio") and pursue the pipeline opportunities that have been assembled (the "Pipeline").
Richard Croft, Chief Executive Officer of M7 Real Estate, commented: "Throughout the IPO process we received positive feedback and a strong level of investment indications from prospective investors. However, a number of investors expressed an interest in acquiring the Initial Portfolio privately. This, combined with the current market conditions and the volume of recent issuances focusing on UK real estate, led the Board to conclude that the Initial Portfolio and Pipeline would be better funded privately over the near to medium term. We are grateful for the support and commitment of the investor community and may revisit a potential listing over the coming 12 months.""

[spectoacc] 21/11/2017 13:51

Like the thesis but yield/targeted returns seem a bit low? Particularly with any gearing. Might well be an underdeveloped asset class in Europe, but we're surely nearer the top of the "chase for yield" than the bottom. Not sure 5.5% cuts it.

Edit - think I'll apply for some anyway. But I still say a targeted total return of 7.5% is naff for property. Where's the risk/reward when the next credit crunch hits?

[speedsgh] 21/11/2017 13:12

CJ - Thanks for pointing out Aberdeen Standard European Logistics Income plc IPO. Looks like BBOX but with European scale/diversification ans Euro big box sector lower down the growth curve than UK. Interesting.

Publication of Prospectus -

Website (links to IPO flyer/prospectus) -

[jonwig] 21/11/2017 12:05

Jack - will look, thanks. Though I do hold SGRO which is probably similar.

[cousin jack] 21/11/2017 11:49

Jon: Have you considered the Aberdeen Standard European Logistics Investment Trust which is currently at offer stage from AJ Bell and some other brokers ? It intends investing in regional distribution hubs in Europe, where it views e-commerce as underdeveloped in comparison to the UK. There are no seed properties and target yield is 5.5% (3.5% in yr ending Dec.18).

[jonwig] 21/11/2017 09:47

I've decided the higher investment quality of AISI compensates for the lower yield than here. Of course the float could be pulled or scaled back, in which case I'll look a bit silly.

[davebowler] 08/11/2017 13:53

Citywire;
Aviva targets 5% yield with £200m launch of first Reit
By Michelle McGagh 07 Nov, 2017
Aviva targets 5% yield with £200m launch of first Reit
Increasing demand from investors has seen Aviva Investors plan to float its first real estate investment trust (Reit).

The fund group is aiming to raise £200 million in the initial public offering of the Aviva Investors Secure Income Reit on the London Stock Exchange.

The Reit will hold a portfolio of long-lease property assets, typically with a minimum lease length of 10 years and a targeted weighted average length of 15 years to expiry.

It will invest in buildings across the UK that are rented to ‘investment grade’ tenants, such as well-known companies, to reduce the risk of defaults on rent payments that impact the income stream to investors.

Renos Booth, who will manage the Reit, said the fund would invest in ‘core’ property assets such as offices and industrials that were leased to ‘fit for purpose [businesses] and strong trading stores’ such as supermarkets.

It will also invest in the alternative property sector, identifying ‘university assets, hotels, and even healthcare’, said Booth.

Aviva Investors is already the UK’s largest real estate manager, with £24 billion of properties under management. It has already identified a portfolio of £85 million comprising of a hotel and GP surgery in the South East, an office in the North West and a supermarket in the South East. There is a follow-up pipeline of £400 million.

The fund will target a total return of 7% a year over the medium term, including a dividend yield of 5% a year, starting at 3% in the first year. It will aim to increase the dividend in line with inflation.

‘The product will provide a secure but growing income that will grow broadly in line with inflation and provide lower volatility,’ said Booth.

He added that the FTSE was at a record high while gilt yields were at a record low, leaving investors with nowhere to turn for income.

‘We’re offering an attractive yield supported by an alternative asset class and that yield does not come at any additional risk,’ said Booth.

‘It’s a defensive play, we’re not trying to capture double-digit growth, but offer predictable yield.’

Aviva Investors runs a similar property-focused fund called Lime Property. The £1.9 billion fund is only open to institutional investors such as pension funds.

Booth said the experiences of Lime Property, which is the ‘least volatile real estate fund in the market’, would be transferred to the Reit, although the institutional fund does not employ gearing while the Reit will.

‘It’s a different structure and ungeared but what we are looking to invest in is not dissimilar,’ he said.

The institutional fund invests in slightly longer leases, averaging 20 years, while the 10 years-plus leases being targeted by the Reit will mean the yield will be higher.

Launch of the Reit marks a return to the closed-ended trust space for Aviva, whose former Morley fund management group used to run the Morley Absolute Growth investment company.

Aviva has instead had an impact on the sector by its large-scale selling of a number of investment trust stakes acquires as part of its 2015 takeover of Friends Life.

[spectoacc] 08/11/2017 12:12

Must admit I sold my small residual AEWL yesterday. Hadn't thought to buy Aviva ones - just where are all these long-term great tenants coming from exactly? Tho they talk about having a good pipeline.

To be fair to Aviva - at 5% they probably can find quite a few.

[jonwig] 08/11/2017 12:03

Spec (and others) - if you think AEWL's premium is excessive, selling and applying for the Aviva issue might make sense.

On a yield basis, AEWL should be priced about 0.4% above AV, but name recognition might be enough to make up the difference. I think AV might be fully invested pretty early on, and so pay the full 5p.

On the other hand, the arb trade is only worthwhile if you want plenty of shares, and there could be a scale-back. I'll probably do nothing - my usual reaction these days!

[jonwig] 07/11/2017 07:39

Intention to Float: Aviva Investors Secure Income REIT:



£200m sought. Looks very similar to this one. Big name attraction, maybe?

[jonwig] 01/11/2017 08:24

Yorkie - corrected - apologies and thanks.

Spec - yes. The slew of recent REIT issues seems to be polarising. I haven't checked on all of them, but maybe this is getting a bit too expensive and some rather cheap.

[spectoacc] 01/11/2017 08:05

Have to say, my first thought was: "96p NAV - are you all mad?".

I just think there's more risk - interest rate risk, recession risk, execution risk, Brexit risk - than can justify a fat premium.

Still hold a very few from IPO mind.

[yorkiemike] 01/11/2017 07:54

First dividend of 0.5p just announced. Seems to be gaining some traction now. The combined cost of the care homes purchase announced this morning is £10.3m.

[jonwig] 01/11/2017 07:25

Acquires two car homes for a total of £10.3m:



I'm not particularly keen on care homes as an investment (Southern Cross, for example) but, as they say, it provides diversity.

Share price is now moving towards a premium of around 7% after the initial doldrums.

[yorkiemike] 13/10/2017 14:07

No, October 2017. If paid, it will be partly effectively a return of capital. Not unusual in early months for Investment Trust IPOs.

[tyranosaurus] 13/10/2017 13:44

Is that October 2018 ?
They have not received enough rent to be able to afford a dividend.

[stemis] 06/10/2017 08:38

I know the property.

According to the prospectus we should 'expect' the first dividend of 0.5p/share to be declared in October (payable in November).