Business
Meridian Metals and NAV Update
Meridian Metals and NAV Update.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 9056Z AEW UK Long Lease REIT PLC 22 May 2019 \n\nAEW UK Long Lease REIT plc (\"AEWL\" or \"the Group\")\nLEI: 213800MPBIJS12Q88F71\n22 May 2019\nMeridian Metals Update and NAV Update for the quarter ended 31 March 2019\n AEW UK Long Lease REIT plc (LSE: AEWL) (the \"Group\"), which owns a diversified portfolio of 19 regional UK commercial property assets, can today update investors on the leases of three properties previously let to Meridian Metal Trading Limited (\"MMT\") and also announces its unaudited Net Asset Value ('NAV') for the quarter ended 31 March 2019.\nMeridian Metal Update\n· On 3 April 2019, the Group announced that MMT, the tenant occupying three industrial assets, had appointed Administrators. As a consequence, the value of the three assets have been included in the 31 March 2019 valuation at their vacant possession value of £6.80 million, a fall of £3.95 million from the 31 December 2018 valuation of £10.75 million. Prior to going into administration MMT paid the full rent due for the quarter ending 24 June 2019.\n· On 9 May 2019, we announced that the assets and business of Meridian Metal Trading Limited (\"MMT\") had been acquired by Meridian Steel Limited (\"Meridian Steel\"), a newly incorporated wholly owned subsidiary of Duferco International Trading Holding S.A. (\"DITH\").\n· We are pleased to announce that earlier today the leases have been assigned to Meridian Steel for all three properties. Under the terms of the new lease arrangements, the passing rental income for the three industrial assets, two located in Dudley and one in Sheffield, will remain unchanged at £659,000, following an initial 12-month rent free period. The leases, which will run for a period of eight years, are linked to the Retail Price Index, with annual reviews and are all guaranteed by DITH. \n· Following the assignment of the leases, Knight Frank LLP, AEWL's independent valuer, has valued the properties at £8.85 million. The impact of this revised valuation would increase the Group's reported NAV based on the balance sheet as at 31 March 2019 (see below) by £2.05 million (2.55 pence per share). \n \nHighlights for the quarter ended 31 March 2019\n· &...