The PRS REIT plc, a closed-ended real estate investment trust established to invest in the Private Rented Sector, has today announced its intention to seek admission to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange plc and an associated fund-raising of up to £250 million by way of a placing, offer for subscription and intermediaries offer of ordinary shares.
The UK Government’s Homes and Communities Agency (“HCA”) will support the Issue with a direct investment in the company of 9.99 per cent. of the gross issue proceeds, up to £25 million.
The investment objective is to provide investors with an attractive level of income together with the prospect of income and capital growth through investment in a portfolio of newly-constructed, residential private rented sector sites of multiple units. These units will comprise mainly family homes, let on Assured Shorthold Tenancies (as defined in the Housing Act 1988) to qualifying tenants. The properties will be located across sites in cities and towns in England with a focus on the main conurbations, and largest employment centres, outside London. The locations follow the main rail and road infrastructure, including the proposed HS2 and HS3 rail networks. The assets will come with the benefit of a 10 year National House Building Council or equivalent warranties, with a consequently low level of capital expenditure allied to a predictable and low cost maintenance regime.