FINANCE: Brandeaux-owned Liberty Living is to launch an IPO with £1.1bn assets from Brandeaux’s redemption-hit student accommodation vehicle.
Liberty Living has confirmed that it will buy the subsidiaries holding the Brandeaux Student Accommodation Fund property portfolio, valued at £1.1bn on 30 April, and apply for a listing on the London Stock Exchange.
In February, Estates Gazette revealed that fund manager Brandeaux had appointed Morgan Stanley to investigate a float of the open-ended vehicle which suspended trading and closed to redemptions on 1 July last year.
The fund’s assets operate under the Liberty Living brand.
Liberty Living said that following admission, the group “aims to be a leading UK student accommodation income-oriented Real Estate Investment Trust.”
It added that the company will benefit from the group’s position as the third-largest owner and operator of private purpose-built student accommodation in the UK (by number of rooms).
The REIT will have a £1.1bn portfolio and an adjusted NAV of £809m, and intends to declare a first dividend of 2.3p a share for the financial year ending 31 August following admission.
The company board will comprise Liberty Living executive chairman, Roger Boyland, and managing director of operations, Charles Marshall.
It will also include Stephen Sheridan, Andrew Murison, Sir Robert Finch, Tracey Graham, Gerry Murphy, and Stuart Beevor.
Boyland said: “Liberty Living offers investors access to an established and proven income-oriented student accommodation business. It operates in a market which benefits from attractive fundamentals, including an ongoing supply and demand imbalance, and limited correlation with economic cycles.
“Our £1.1bn portfolio of high-quality accommodation, which generates more than £80m of annual income, has delivered a core occupancy rate of 99% in the past five years, supported by our partnerships with 35 leading educational institutions.”
bridget.oconnell@estatesgazette.com
