Founded in 2015, AEW UK REIT is a UK-based closed-ended real estate investment trust (REIT) that is engaged in investing in a diversified portfolio of small, high yielding commercial properties across the UK. Its objective is to invest predominantly in a portfolio of smaller commercial properties across the UK to deliver an annualised 8p per share dividend and high return to its shareholders. To achieve its objective, it invests in freehold and leasehold properties across all sectors of commercial sector, such as retail warehouses, industrial/warehouse, office properties, standard retail, and leisure properties to achieve a balance portfolio with a range of tenant base, offering attractive, risk adjusted total returns. The trust is listed on the premium segment of the official list of the UK Listing Authority and its shares are traded on the Main Market of the London Stock Exchange as LON: AEWU since 2015.
The trust has appointed AEW UK Investment LLP as its investment manager. The trust aims to deliver total return exceeding its benchmark, MSCI/AREF UK PFI Balanced Funds Quarterly Property Index. its portfolio’s properties are located in South East, South West, Eastern, West Midlands, East Midlands, North West, Yorkshire and Humberside, Wales, Scotland, and rest of London. The trust’s strategy is to exploit what it believed to be the compelling relative value opportunities offered by pricing inefficiencies in smaller commercial properties tenanted for shorter occupational leases in strong commercial locations across the UK. The trust will undertake active asset management to improve the quality of income streams and maximise value.
Some of the investment restrictions to diversify risk and enhance return are: the value of no single property can represent over 15% of GAV, it can commit maximum 10% of its NAV to development activities, the value of properties in any one of the sectors including retail warehouse, office properties, high-street retail and industrial/ warehouse properties should not be more than 60% of GAV, maximum 20% of NAV can be invested in unoccupied and non-income producing assets, it may also commit up to 10% of the NAV in the AEW UK Core Property Fund, the trust will not invest in other closed-ended investment companies and if the trust invests in derivatives for the proposes of efficient portfolio and cash management, the total notional value of the derivative at the time of investment will not exceed, in aggregate of 35% of GAV.
Some of the Trust’s top properties include Eastpoint Business Park, Plastipak, 40 Queens Square, Unit 16 and Unit 16a Langthwaite Grange Industrial Estate, 15-33 Union Street, Lockwood Court, London East Leisure Park, Arrow Point Retail Park, Storeys Bar Road and Units 1001-1004 Sarus Court. Some of the top tenants of the trust are Plastipak UK Ltd, Aedagh Glass Ltd, Wyndenham Peterborough Ltd, Mecca Bingo Ltd, Harrogate Spring Water Limited, Odeon Cinemas, Sports Direct and many more.
6th Floor, 65 Gresham Street EC2V 7NQ United Kingdom