AEW UK Investment Management is looking to raise up to £150m with the listing of the UK Long Lease Real Estate Investment trust.
The IPO is targeting an annual dividend of 5.5 pence per share paid quarterly. The trust will list on the London Stock Exchange with shares selling for £1 each.
The managers of the trust will be portfolio manager Alex Short and assistant portfolio manager Laura Elkin.
The Reit will target property types which are “underrepresented” by institutional investors, such as leisure, healthcare, education, hotels, student accommodation, supported living and automotive.
Given the “strong current pipeline” of investments it will target, the Paris-based investment firm says it expects to “substantially invest” the money raised through the stock exchange listing in the next nine months.
AEW UK Long Lease Reit chairman Steve Smith says AEW has over 30 years’ investment experience specialising in real estate.
“The portfolio management team possess the ideal experience and proven track record to fulfil our objective of generating the secure, predictable and sustainable income return that investors are seeking in the current economic environment.”
The firm is to publish the prospectus in mid May. Close price and offerings will take place in late May with admission and dealings kicking off in early June.
The minimum application size for financial advisers will be £1,000.
Director of the investment manager and portfolio manager Alex Short says: “We have a depth of expertise and proven insights that will allow us to rapidly create a diversified portfolio of properties that are less widely invested in by institutional investors.
“Our target assets are characterised by having long, inflation linked leases, where we are also able to preserve capital value through detailed analysis and understanding of the real estate fundamentals. As a result, we intend to declare quarterly dividends, targeting an annual dividend of 5.5 pence per Share rising in line with inflation, once proceeds are invested and levered.”