Aew Uk Long Lease Reit Share Discussion Threads

[jonwig] 26/5/2017 05:59

Spec - yes, it looks like HL are rebating part of their commission - the same as VCT discount brokers.

My reason for investing in this (as with LXI) is defensiveness, no more. If it owns a freehold, default by the leaseholder should be an extremely rare occurrence, though if it's the head leaseholder there's rather more hazard.

[jonwig] 26/5/2017 05:54

Brief IC article today. Conclusion:

IC VIEW:

Investment manager AEW UK Investment Management forms part of AEW Global, which has more than €60bn (£52bn) of assets under management, so the investment pipeline should be pretty decent. The prospective yield is competitive, but it's worth noting that this will only be paid when the proceeds are fully invested. Therefore, initial yields will be somewhat lower than the 5.5 per cent targeted, but the shares might be worth a closer look.

[spectoacc] 25/5/2017 13:33

Thanks @jonwig.

I said on the other thread:

"SpectoAcc11 May '17 - 20:27 - 79 of 86 1 0 Edit
Would like to see the costs - the yield feels like it could/should be higher - the gearing, and also:

"..leisure, healthcare, education, hotels, student accommodation, supported living and automotive.."

aren't particularly under-represented IMO - student accommodation is overdone if anything.

But otherwise agree - worth a look, subject to the fact I've personally a little too much property exposure already."


But the HL "bonus" has persuaded me to apply for some. Will probably take a recession to test all these new "safe income" ITs, or a rise in interest rates, but neither looks imminent, barring a Corbyn win.

[cousin jack] 22/5/2017 10:37

Jon: Thanks. Money is chasing good yield at the moment so this looks a timely opportunity. I shall probably invest.

[jonwig] 22/5/2017 10:17

Jack - the intermediaries receive commission, which is usually 1 to 1.5% (I can't find the figure in the prospectus here). HL are, of course, grabbing clients.

As for not reaching size, yes that's always a possibility. But this is also an institutional placing and 5.5% on long leases is pretty secure: it will suit pension funds.
It's worth comparing this with LXI REIT which has a similar mandate, offers 5% and trades at 104p.

[cousin jack] 22/5/2017 09:39

HL offering 0.75% free extra shares additional to any application made through them. I don't recall seeing an offer like that before - might this indicate an element of doubt about how successful the issue will be ?

[jonwig] 21/5/2017 05:45

The header website contains links to structure of the offer including dates, brochure and prospectus.

Closing date 31 May (may be earlier for the intermediaries), dealings start 6 June.

[jonwig] 21/5/2017 05:45

. .

!FOLLOWFEED
~~~~~~~~~~~~~~~~~

Significant shareholdings (June 2017) total 80,500,000 shares:

Old Mutual ......... 15,000,000 18.3%
Hawksmoor Inv Mgt ... 7,605,139. 9.4%
Charles Stanley ..... 4,035,250. 5.0%