UK Residential Reit seeks to raise £ 150million in stock market float


UK Residential Reit today unveiled plans for a first public offering on the London Stock Exchange as it seeks to cash in on the UK housing shortage.

The real estate investment trust, which was set up to invest in privately leased residential properties outside London, is targeting total proceeds of £ 150million plus an issue of 50million matching shares linked to the ‘purchase of seed assets.

The total expected market capitalization after the acquisition of the seed assets is £ 200million.

UK Residential Reit has announced its intention to acquire a £ 145million seed portfolio of 28 properties, consisting of 1,214 residential units.

He said the properties, which are located in cities like Manchester, Liverpool and Bristol, will generate income immediately.

The company said it has also identified a £ 440million pipeline of additional investment opportunities and expects the balance of the net proceeds to be invested within one year of listing.

The real estate group said it is aiming for a dividend yield of 5.5% per annum from July 1, 2022 and a net total return to shareholders of 10%.

UK Residential Reit has said he is looking to capitalize on the sustained growth of the private rental sector, which he says has been supported by tighter lending requirements since the financial crisis and a structural under-supply of UK housing. .

He said the increased population and market growth, coupled with persistent conditions of affordability and under-supply, meant the sector was poised for further growth over the next five years.

“The UK faces a serious shortage of good quality rental accommodation, especially those that are both affordable for the majority of the workforce and are in well-connected regional towns which should see people increase in the future, ”said Richard Grainger, non-executive chairman of UK Residential Reit.

“The rate of new construction will never keep pace with this demand, giving professional investors the opportunity to take the lead in creating a high-quality product and providing a solution to one of the most pressing issues facing the industry. society is facing today ”.

The listed company will be managed by L1 Capital UK Property Advisors. Panmure Gordon is the sponsor of the IPO and Panmure Gordon and RBC Capital Markets act as associate bookkeepers.

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