The Multifamily Housing REIT, a regional UK private rented sector (PRS) property group, is planning to raise £175m (€196.7m) on the London Stock Exchange.
The closed-ended real estate investment trust said it intends to raise the capital by issuing shares at £1 each and join the stock exchange on 28 September.
As part of the listing process, the company’s subsidiary, Multifamily Asset 1 Limited, is issuing shares to buy a seed portfolio of 658 PRS homes and five commercial units across 22 properties for an aggregate price of £70.3m.
The seed portfolio is currently managed by Harwood Real Estate.
Nick Jopling, a non-executive chairman of The Multifamily Housing REIT, said: “The provision of, and access to, good quality and affordable privately rented accommodation has been lacking in the UK and it remains one the most undersupplied and fragmented, yet fastest growing, parts of the housing market.
“Through the assembly and performance of the seed portfolio, the highly experienced management team has demonstrated that The Multifamily Housing REIT model is a compelling proposition, delivering a highly visible and improving income stream year on year and giving us confidence that we can deliver significant market outperformance and attractive returns for shareholders.”
Jonathan Whittingham, CEO of Harwood Real Estate Asset Management and non-executive director of The Multifamily Housing REIT, said: “This is a hugely exciting opportunity for investors, as we look to capitalise on the favourable supply-demand dynamics supporting investment into the PRS sector, an addressable market believed to be valued at over £900bn, and build out the UK’s first significant built stock platform to meet the demands of renters for genuinely affordable, well-located accommodation.
“With a significant pipeline of good-quality, high occupancy properties identified, we are well placed to deliver the 10% income focussed target return, as the first REIT to offer investor access to the existing PRS market on an institutional scale.”