REG - AEW UK REIT PLC - AEW UK REIT plc secures new debt facility

Aew UK ReitAnnouncement

12/05/2022 07:00

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RNS Number : 1846L  AEW UK REIT PLC  12 May 2022

12 May 2022

 

AEW UK REIT PLC

 

AEW UK REIT PLC SECURES NEW DEBT FACILITY

 

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company") is pleased to announce
that the Company has secured a new £60 million 5-year term loan facility with
AgFe, a leading independent asset manager specialising in debt-based
investments. The loan is a fixed rate loan with a total interest cost of
2.959%. The existing £54 million RBS International loan facility, which is
due to mature in October 2023, will be repaid in full by the new loan
facility. Simultaneous to the funding, the Company's interest rate cap will be
sold; with its value, as at 30 April 2022, being £908,000.

 

In the current inflationary environment, the Company considers it prudent to
fix the loan now, rather than run the risk of further rising rates.

 

The Company intends to utilise borrowings to enhance returns over the next
five years. In anticipation of capital receipts from the sales of both East
Point Business Park in Oxford and Bath Street in Glasgow, the Company is
currently reviewing an attractive pipeline of assets which offer income
levels and capital growth opportunities in line with the existing portfolio.

 

As was announced in the March 2022 NAV update, the Company had a loan to NAV
ratio of 28.26%. With this new loan facility secured, the loan to NAV will be
31.40% (using the NAV as at 31/03/2022), returning the Company to its target
loan to NAV ratio of 30-35%.

 

Laura Elkin, Portfolio Manager of AEW UK REIT said: "This new facility with
AgFe, secured against the backdrop of increasing rates, will allow the Company
to continue to invest and realise the strong pipeline of interesting
opportunities that we are currently pursuing, whilst also continuing to
deliver strong returns to the Company's shareholders."

 

ENDS

 

 Enquiries
 AEW UK
 Laura Elkin                     laura.elkin@eu.aew.com (mailto:laura.elkin@eu.aew.com)
                                 +44(0) 7917 058 337
 Henry Butt                      h (mailto:henry.butt@eu.aew.com) enry.butt@eu.aew.com
                                 (mailto:henry.butt@eu.aew.com)
                                 +44(0) 7920 499 076
 Nicki Gladstone                 nicki.gladstone-ext@eu.aew.com (mailto:nicki.gladstone-ext@eu.aew.com)
                                 +44(0) 7711 401 021
 Company Secretary
 Link Company Matters Limited    aewu.cosec@linkgroup.co.uk
                                 +44(0) 1392 477 500

 TB Cardew                       AEW@tbcardew.com (mailto:AEW@tbcardew.com)
 Ed Orlebar                      +44 (0) 7738 724 630
 Tania Wild                      +44 (0) 7425 536 903
 Lucas Bramwell                  +44 (0) 7939 694 437

 Liberum Capital
 Darren Vickers / Owen Matthews  +44 (0) 20 3100 2000

 

 

 

 

 

 

 

 

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 £15 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 (http://www.aewukreit.com/)

 

LEI: 21380073LDXHV2LP5K50

 

About AEW UK Investment Management LLP

 

AEW UK Investment Management LLP employs a well-resourced team comprising 28
individuals covering investment, asset management, operations and strategy. It
is part of AEW Group, one of the world's largest real estate managers, with
€88.2bn of assets under management as at 31 December 2021. 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 2021,
AEW Group managed €38.5bn of real estate assets on behalf of a number of
funds and separate accounts with over 450 staff located in 12 locations. In
May 2019, AEW UK Investment Management LLP was awarded Property Manager of the
Year at the Pensions and Investment Provider Awards.

 

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