AEW UK long lease real estate investment trust (REIT) raises £80.5m in initial public offering

AEW UK’s long lease real estate investment trust (REIT) has raised £80.5m in an initial public offering (IPO) on the London Stock Exchange today.

AEW UK Investment Management, which is the British subsidiary of AEW Global, said last month it is hoping to raise up to £150m in the IPO. The proceeds are expected to be invested within the next nine months.

The REIT is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested.

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Steve Smith, chairman of the company, said: “We are pleased with the response we have received to our initial public offering from both institutional and retail investors. We believe our strategy of investing in sectors that are underrepresented in institutional portfolios is a strong one, and we are now well placed to capitalise on our strong pipeline of current investment opportunities.

“The support we have received from our new shareholders is testament to the management team’s expertise and experience, and we look forward to delivering the secure, diversified and sustainable income return that our investors are seeking.”