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UK Residential REIT IPO fails to find a home

Biotech trusts top performance charts in February

UK Residential REIT (URES) has decided not to proceed with its IPO after failing to meet the minimum fundraising set out in its prospectus.

Investment Week, Kathleen Gallagher 16 July 2021 • 1 min read

This was “despite strong retail investor support demand,” the company explained in statement seen by Investment Week.

Subscription amounts were re-credited to accounts on Thursday (15 July).

Earlier this week, Investment Week revealed the company was contemplating its options as it had failed to reach its target £150m fundraising by the timeline outlined in the prospectus.

URES was planning to invest in a diversified portfolio of affordable, privately rented residential real estate assets outside London, including Manchester, Sheffield, Leeds, Liverpool and Bristol.

“It’s slightly surprising that this failed to launch, given the strength of the demand for rented homes and the well-publicised housing shortage in the UK,” said Richard Williams, QuotedData property analyst.

“The fund would have been focused on the affordable part of the rental market, where the pool of potential tenants is deep, and distinguishes itself from other listed rental residential players like Grainger (more high end) and PRS REIT (family homes). It will be interesting to see whether it comes back at some point in the future, as there is certainly a place for it.”

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