The board of directors of AEW UK REIT (AEWU) has confirmed the company is considering submitting an all-share offer to acquire the entire issued share capital of Alternative Income REIT (AIRE).
Under the terms of the offer, AIRE shareholders would receive 0.725 shares in AEWU for each AIRE share held, with a discount applied to AIRE’s NAV per share of 6%.
Earlier this year, AEWU confirmed it was considering submitting an offer for AIRE and an in-principle agreement of terms was reached with the board of AIRE for an all-share deal by way of a scheme of arrangement.
However, on 21 April AEWU made a statement that it did not intend to make an offer. On 12 June 2026 Glenstone REIT, which holds a 24.78% stake in AIRE, announced a firm intention to make a cash offer for the issued share capital of AIRE that it does not already own, which released AEWU from its restrictions under the City Code to make another approach to AIRE.
AEWU’s board believes AIRE’s portfolio is consistent with the assets and management style applied within AEWU. In particular, AIRE’s assets’ inflation-linked income stream is felt to be “complementary to the strong rental growth prospects offered by the portfolio of AEWU and the possible combination of the companies could have served both sets of shareholders’ interests”.
