Conclusion of Strategic Review

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AEW UK Long Lease REIT plc ("AEWL" or "the Group")

LEI: 213800MPBIJS12Q88F71

Conclusion of Strategic Review

07 August 2019

The Board of AEWL today announces the conclusion to its strategic review commenced on 10 April 2019.

The Board received several proposals which broadly encompassed a sale of the Group, a variety of merger options and managerial changes. 

All proposals were reviewed by the Board, in consultation with the Company's financial adviser Cenkos Securities, and a shortlist of interested parties were invited to present their best terms. 

Following meetings with each of these parties and consulting with major shareholders, the Board has concluded that none of the proposals reflect the true value of the Group and therefore the Board believes that none of these options are currently in the best interests of shareholders.  The Board believes that the proposals, in some instances, undervalued certain of the Group's assets or the interested parties were unable to provide certainty of execution, including the availability of new capital.

The Board of AEWL will implement a cost reduction exercise, with the objective of delivering a fully cash covered dividend, at or close to the original dividend target indicated at the time of the Group's IPO, for the entire financial year ending 30 June 2021.  

As announced on 10 April 2019, the Board has served protective notice of termination of the investment management agreement with AEW UK Investment Management LLP (which is due to expire on 9^th April 2020).  The Board is exploring options to recruit a property manager to manage the Group's properties following the expiry of AEW UK Investment Management LLP's notice period.

In the coming period, the Board, along with the Group's advisers, will continue to seek longer term solutions to expand the Group, including the introduction of new capital, and deliver shareholder value.

Following this announcement, AEWL is no longer considered to be in an "offer period" as defined in the Takeover Code and the requirement to make disclosures under Rule 8 of the Takeover Code in relation to the Company has now ceased.

This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.

For further information, please contact:

AEW UK Long Lease REIT plc

Steve Smith, Chairman                  +44 (0)7787 238 223

Cenkos Securities plc

Sapna Shah                                         +44 (0)20 7397 1922

Tom Scrivens                                     +44 (0)20 7397 1915

Important notices

Cenkos Securities plc ("Cenkos") is regulated by the Financial Conduct Authority in the UK. Cenkos is acting exclusively for AEWL and no one else in connection with this announcement and shall not be responsible to anyone other than AEWL for providing the protections afforded to clients of Cenkos nor for providing advice in connection with this announcement or any matter referred to in this announcement.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to other jurisdictions should inform themselves of, and observe, any applicable requirements.

Unless required by the Takeover Code copies of this announcement and all documents relating to this announcement are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of that jurisdiction, and persons receiving this announcement and all documents relating to this announcement (including custodians, nominees and trustees) must not mail or otherwise distribute or send them in, into or from such jurisdictions where to do so would violate the laws of that jurisdiction.

Persons who are not resident in the United Kingdom should inform themselves of, and observe, any applicable requirements. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in this announcement disclaim any responsibility or liability for the violation of such restrictions by any person.

This announcement shall be subject to the applicable requirements of the Takeover Code, the Takeover Panel, the London Stock Exchange and the Financial Conduct Authority.