AEW UK REIT plc secures new debt facility

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

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

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.