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AEW UK REIT plc: Debt Facility Amendment

AEW UK REIT plc: Debt Facility Amendment

24-Jun-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

24 June 2020  



Debt Facility Amendment



AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce an amendment to its loan facility which permits the Company to make loan repayments and to re-draw amounts under the facility, akin to a revolving credit facility. The Company has the flexibility to repay any amount, at any time and without transaction fees, although a commitment fee will be charged on any repaid loan amounts. The facility's key terms, including the Loan to NAV covenant, remain unchanged. 


The Company currently has a gross loan to value of 29.5% following the sale of its Corby asset which reduced the total portfolio valuation, and a net loan to value of 13.9%, reflecting the increased cash balance following the sale. The Company's long-term gross loan to value target is 25% and the Company intends to immediately apply £5 million of its available cash to the repayment of debt utilising the new flexible permissions which will reduce its gross loan to value to 26.7%.


The Board, in conjunction with the Manager, will maintain a cautious approach in respect of the Company's cash balance in the current environment.  The Investment Manager continues to monitor opportunities for investment and believes that market conditions may facilitate an increased number of attractive pipeline opportunities of which the Company will be well placed to take advantage.


Commenting on the agreement, Alex Short, Portfolio Manager of AEW UK REIT said, "We are very pleased to have negotiated such an attractive amendment to our debt facility which gives us incredible flexibility at a time of unprecedented market conditions. Although the Company's overall borrowing levels are very conservative and banking covenants having significant headroom as at their most recent test date, the Board, following advice from AEW's in-house debt specialists, has taken further steps to de-risk the Company's exposure to borrowing.  This latest amendment is in addition to other recently announced changes which include an agreement from the lender to waive the Company's ICR tests until 2021, the purchase of a 1% interest rate cap and the increase of loan to value hard covenants, which all add to the Company's strong positioning at a difficult time in the global markets.  The Company would like to thank RBS International for their ongoing support."


 For further information, please contact:




Alex Short


+44(0) 20 7016 4848

Laura Elkin


+44(0) 20 7016 4869

Nicki Gladstone


+44(0) 7711 401 021

Company Secretary

Link Company Matters Limited

+44(0) 1392 477 500



TB Cardew

Författare AEW UK REIT plc

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