Residential Secure Income has announced plans for an initial public offering, aiming to raise up to £300m.
The REIT’s focus is on social housing, which it defines as “shared ownership homes, market rental homes, functional homes and sub-market rental homes throughout the UK.”
Jefferies is adviser and bookrunner for the listing, which is expected to take place later this month.
The REIT has already held talks on the acquisition of a portfolio of houses valued at £263m.
It is targeting on a fully invested and geared basis, an inflation-linked dividend yield of 5% pa based on the issue price of 100p per ordinary share and a total return in excess of 8% pa. The company intends to pay dividends to shareholders on a quarterly basis and in accordance with the REIT regime.
Baroness Dean, Residential Secure Income’s chairman, said: “Residential Secure Income aims to become a long-term capital partner of housing associations and local authorities, enabling them to increase their development of new homes by recycling capital whilst continuing to manage, maintain and rent out the homes.
“ReSI represents a highly scalable, long-term investment opportunity to generate secure, inflation-linked returns for shareholders with the potential for capital growth.”
It is expected that the prospectus will be published and the issue will open during the week beginning 19 June.
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