London Stock Exchange today welcomed K&C REIT plc
London Stock Exchange today welcomed K&C REIT plc, the Central London-focused residential real estate group to a market open ceremony, marking the admission of its shares to trading on AIM.
K&C represents a scalable business model with the objective to build a substantial residential property portfolio valued at over £500m. The Company will generate income and capital growth through the tax-efficient acquisition of residential property special purpose vehicles ("SPVs") with inherent capital gains and then add value to the portfolio post-acquisition. In addition, on Admission, the Company has agreed to acquire Silcott Properties Limited (“Silcott”) for a consideration of £3,630,000. The Chelsea property owned by Silcott, has 10 apartments and has been independently valued at £4 million, so the acquisition price represents a 9.25% discount to the property value.
Commenting, K&C's CEO, Tim James said:
"We are delighted to complete our IPO and to start trading on AIM. Our plans are advanced, with our first acquisition of Silcott announced alongside our Admission to AIM. Our intention is to provide investors with an opportunity to gain exposure to the Central London residential property market, one of the most resilient sectors of the UK housing market over the past few decades and to that end we have identified, and have Letters of Intent in place, for properties worth in excess of £40m - we know that the opportunity is there.
“As a REIT, we will have the ability to purchase properties at a discount to market value and will look to increase value through active asset management, aiming to generate growth in capital values and rental yields. Our management team will use their many years of expertise and will exploit our long-term relationships in the Central London residential market to build a portfolio in excess of £500 million. K&C provides an exit strategy for vendors of SPVs and attractive yields to investors."
The IPO placing raised £3,566,340, which equates to a market capitalisation of £4.38m on Admission. Allenby Capital is acting as Nominated Adviser and Broker to the Company.