Private rented sector specialist K&C REIT plans to raise £150m in a share issue and has appointed former Helical investment director Duncan Walker as a non-executive director.
The AIM-listed company, which will change its name to KCR Residential REIT, said it would float on the main market of the London Stock Exchange and has secured up to £100m of debt in principle to fund future residential purchases.
The listing on the LSE would represent a major step up for the company, which listed on AIM in 2015 and has targeted residential investments of £1m-£5m. Potential deals totalling up to £400m have already been identified by the new REIT.
The board expects to complete its next acquisition, which it is anticipated will come from the existing pipeline of identified opportunities, within three months of admission to the LSE.
Dominic White, chief executive of K&C REIT, said: “To fully capitalise on the investment opportunities that we are seeing across the UK market, the company is seeking to raise the funds required to scale up.
“With stable and growing rental incomes generating strong yields, the UK private rented residential market is a highly attractive sector. Continuing our UK residential strategy and using the REIT structure, we have the ability to add value through active asset management to generate growth in capital values and rental yields.”
Arden Partners, the company’s nominated adviser and broker, is acting as the company’s sole bookrunner for the placing.
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