The AEW UK Long Lease REIT faces being wound up after its board announced it was “reviewing the options for the future” of the UK-listed fund.

The manager of the fund, AEW UK Investment Management, has received protective notice of the termination of its investment management agreement.

The move follows the news earlier this month that Meridian Metal Trading had fallen into administration. Meridian is the largest single provide of rental income to AEW UK Long Lease REIT, representing 10% of its total income.

The announcement by the board mentioned the “scub-scale size” of the fund and its performance since its initial public offering.

The fund was listed in June 2017, raising £80.5m (€93.5m). At the end of 2018, it held 18 properties with a net asset value of £78.5m.

The board said it “will seek to achieve value for shareholders”, either by expanding the fund’s equity and asset base to achieve full dividend cover, or considering offers from interested parties or by selling the portfolio and returning funds to shareholders.

“Ultimately, after all options have been considered, the board may decide to continue to pursue the group’s existing strategy with AEW UK Investment Management,” it said.