Urban Exposure launches £500m loan note

Urban Exposure is seeking up to £500m in a programme of fundraises for UK residential developers. The AIM-listed residential developer and asset manager has launched a bond offering available to retail investors to fuel its development lending. The seven-year bonds will bear a fixed rate of interest of 6.5% per annum, payable semi-annually in arrears in equal instalments. There will be multiple raises expected with a benchmark transaction north of £50m. The bonds are expected to be listed on the London Stock Exchange and the current offer period will close on 30 July 2019. Chief executive, Randeesh Sandhu, said: “We are looking UK-wide at residential and mixed-use developments, predominantly at projects where the end market is first-time buyers and young professionals. “By definition, that tends to rule out prime central London. We are trying to finance schemes where there is a big supply-demand imbalance in the local market. That means urban locations and generally apartment schemes.” Urban Exposure has invested in schemes in key cities in Scotland, England and Wales, including a senior debt facility to fund Galliard’s Timber Yard development in Birmingham (pictured). Urban Exposure raised £150m through its IPO in May 2018 and has since raised a further £371m. It has a target to raise a further £700m this year. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette