Business
Intention to raise new equity
Intention to raise new equity.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 1574B AEW UK Long Lease REIT PLC 08 January 2018 \n\nTHIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, CANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.\n \nThis announcement is not an offer to sell, or a solicitation of an offer to acquire, securities in the United States or in any other jurisdiction. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.\n \nAEW UK LONG LEASE REIT PLC\n \n8 January 2018\n \nInvestment Update, New Bank Facility and Proposed Issue of New Equity\nAEW UK Long Lease REIT plc (the \"Company\") raised £80.5 million from institutional and retail investors at its IPO in June 2017 via an Initial Placing, Offer for Subscription and Intermediaries Offer, under a Share Issuance Programme of up to £300 million.\n \nAt the time, the Company stated its expectation to invest substantially all the net proceeds of the IPO within nine months of listing by investing in alternative and specialist real estate sectors in the UK to offer a secure, diversified and inflation-linked income return, whilst at least maintaining capital values in real terms. The Company is pleased to announce that £76 million (which includes the acquisition costs) has now been deployed.\n \nNew Bank Facility\nThe Company further announces that it has entered into a new £30 million 8 year fixed loan (to 20 October 2025) with Canada Life Investments. The term facility is up to 35% loan to property value, provided on a portfolio basis.\n \nInvestment Update\nAEW UK Investment Management LLP (the \"Investment Manager\") has seven properties totalling c. £30 million under offer on behalf of the Company, which are expected to complete by the end of January 2018. Completing on these properties (including the acquisition costs) will result in full deployment of the net IPO proceeds, and £30 million drawn under the Company's new loan facility.\n \nIn addition, the Investment Manager has a further pipeline of four properties totalling £16.3 million under o...