TIDMAEWU
RNS Number : 7056N
AEW UK REIT PLC
27 September 2023
27 September 2023
AEW UK REIT plc
Non-material changes to Investment Policy
AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") announces
that it has made certain non-material changes to its Investment
Policy to better reflect current practice. The changes are:
-- the removal of the Company's ability to invest in AEW UK Core
Plus Property Fund (the "Core Fund") as the Company disposed of its
last remaining units in the Core Fund in May 2017 and the Company
has no current intention of re-investing in the Core Fund;
-- deletion of the illustrative detail on the property sectors
which the Company may invest in; and
-- an amendment to the Borrowing Policy whereby the borrowing
limit of 25% of Gross Asset Value may still be increased to 35% of
Gross Asset Value provided that the directors of the Company (the
"Directors") reasonably believe that the Company will complete an
equity fundraising within six months (as opposed to three months as
previously provided). For these purposes, "Gross Asset Value" means
the aggregate value of the total assets of the Company as
determined in accordance with the accounting principles adopted by
the Company from time to time.
The Company has also made certain amendments to its Investment
Management Agreement ("IMA") with AEW UK Investment Management LLP
(the "Manager") to address changes in law and regulation since it
was last updated in 2019 and to better reflect current practice.
The commercial terms of the IMA remain materially unchanged.
Full details of the changes to the Investment Policy are
highlighted at the end of this announcement.
Enquiries
AEW UK
Laura Elkin laura.elkin@eu.aew.com
+44(0) 7917 058 337
Henry Butt henry.butt@eu.aew.com
+44(0) 7920 499 076
Nicki Gladstone nicki.gladstone-ext@eu.aew.com
+44(0) 7711 401 021
Company Secretary
Link Company Matters Limited aewu.cosec@linkgroup.co.uk
+44(0) 7548773155
TB Cardew AEW@tbcardew.com
Ed Orlebar +44 (0) 7738 724 630
Tania Wild +44 (0) 7425 536 903
Henry Crane +44 (0)7918 207157
Liberum Capital
Darren Vickers / Owen Matthews +44 (0) 20 3100 2222
REVISED INVESTMENT POLICY
The revised Investment Policy of the Company is included below.
Additions are highlighted in bold underlined text and deletions are
shown as strike through text.
Investment Objective
The investment objective is to deliver an attractive total
return to Shareholders from investing predominantly in a portfolio
of smaller commercial properties in the United Kingdom.
Investment Policy
In order to achieve its investment objective, the Company
invests in freehold and leasehold properties across the whole
spectrum of the commercial property sector (office properties,
industrial/warehouse properties, retail warehouses and high street
retail) resulting in a diversified tenant base.
Investment restrictions
1 The Company invests and manages its assets with the objective
of spreading risk through the following investment
restrictions:
1.1 the value of no single property, at the time of investment,
will represent more than 15.00% of Gross Asset Value;
1.2 the Company may commit up to a maximum of 10.00% of its Net
Asset Value (measured at the commencement of the relevant project)
to development activities;
1.3 the value of properties, measured at the time of each
investment, in any one of the following sectors: office properties,
industrial/warehouse properties, retail warehouses and high street
retail will not exceed 60.00% of Gross Asset Value;
1.4 investment in unoccupied and non--income producing assets
will, at the time of investment, not exceed 20.00% of Net Asset
Value;
1.5 the Company may commit up to a maximum of 10.00% of the Net
Asset Value (at the time of investment) in the AEW UK Core Plus
Property Fund (the 'Core Fund'). The Company disposed of its last
remaining units in the Core Fund in May 2017 and it is not the
current intention of the Directors to invest in the Core Fund;
1.5 the Company will not invest in other closed ended investment companies; and
1.6 if the Company invests in derivatives for the purposes of
efficient portfolio and cash management, the total notional value
of the derivatives at the time of investment will not exceed, in
aggregate, 35.00% of Gross Asset Value.
2 The Directors currently intend, at all times, to conduct the
affairs of the Company so as to enable the Company to qualify as a
REIT for the purposes of Part 12 of the Corporation Tax Act 2010
(and the regulations made thereunder).
3 The Company will, at all times, invest and manage its assets
in a way that is consistent with its objective of spreading
investment risk and in accordance with its published investment
policy and will not, at any time, conduct any trading activity
which is significant in the context of the business of the Company
as a whole.
4 In the event of a breach of the investment policy and
investment restrictions set out above, the Directors upon becoming
aware of such breach will consider whether the breach is material,
and if it is, notification will be made to a Regulatory Information
Service.
5 Any material change to the investment policy or investment
restrictions of the Company may only be made with the prior
approval of Shareholders.
Borrowing Policy
1 The Company intends to utilise borrowings to enhance returns
over the medium term. Borrowings will be utilised on a limited
recourse basis for each investment on all or part of the total
Portfolio. It is currently anticipated that the Directors will
target a level of total borrowings of up to 25% of Gross Asset
Value (measured at drawdown) and will comply with the REIT
condition relating to the ratio between the Group's 'property
profits' and 'property finance costs'.
2 The above borrowing limit of 25% may be increased to 35%:
2.1 PROVIDED THAT the Directors reasonably believe that the
Company will complete an equity fundraising within three six months
of such investment; or
2.2 as part of the Manager's efficient portfolio management
whereby the investment is made prior to the anticipated sale of an
existing investment, and where completion of the sale is expected
to be completed within three months of the relevant investment and
the proceeds of such equity fund raising or sale would be
reasonably expected to reduce the borrowing of the Company to 25%
of the Gross Asset Value or less.
ENDS
Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total
return to shareholders by investing predominantly in smaller
commercial properties (typically less than GBP15 million), on
shorter occupational leases in strong commercial locations across
the United Kingdom. The Company is currently invested in office,
retail, industrial and leisure assets, with a focus on active asset
management, repositioning the properties and improving the quality
of income streams. AEWU is currently paying an annualised dividend
of 8p per share.
The Company was listed on the Official List of the Financial
Conduct Authority and admitted to trading on the
Main Market of the London Stock Exchange on 12 May 2015. www.aewukreit.com
LEI: 21380073LDXHV2LP5K50
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team
comprising 29 individuals covering investment, asset management,
operations and strategy. It is part of AEW Group, one of the
world's largest real estate managers, with EUR84.9bn of assets
under management as at 31 December 2022. AEW Group comprises AEW SA
and AEW Capital Management L.P., a U.S. registered investment
manager and their respective subsidiaries. In Europe, as at 31
December 2022, AEW Group managed EUR38.5bn of real estate assets on
behalf of a number of funds and separate accounts with over 470
staff located in 10 locations.
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END
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