AEW UK REIT has announced plans to undertake a 12 month share issuance programme with a target income of £40m.
The issuance programme will commence with an issue of ordinary shares, currently anticipated to close around mid-October 2017. The initial issue is expected to be undertaken by way of a placing, offer for subscription and intermediaries offer.
The company is seeking to raise a target amount of £40m under the initial issue, but this could be increased to up to a maximum of £60m if the directors believe it is appropriate to do so in light of the pipeline of properties and the expected speed of deployment of the net proceeds of the initial issue. The initial issue price will be set by reference to the prevailing NAV per share, and the share price at the last practicable date prior to the publication of the prospectus.
Investment manager AEW UK Investment Management is currently seeking properties in locations that exhibit healthy levels of tenant demand and low levels of supply for competing stock.
It said that it had seen an increased number of attractive opportunities in retail and other sectors in recent weeks, and therefore expects that future acquisitions will represent a more balanced spread of property sectors, rather than being concentrated in the industrial sector as seen over past quarters.