ICG-Longbow intends to list a vehicle that will invest in senior UK real estate debt on London Stock Exchange. The IPO of ICG-Longbow Senior Secured UK Property Debt Investments (SSUP) is designed to raise a minimum of £100 mln (EUR 125 mln) and is capped at £250 mln.
ICG-Longbow intends to list a vehicle that will invest in senior UK real estate debt on London Stock Exchange. The IPO of ICG-Longbow Senior Secured UK Property Debt Investments (SSUP) is designed to raise a minimum of £100 mln (EUR 125 mln) and is capped at £250 mln.
SSUP will invest in senior UK commercial property debt, by making new individual loans with a maximum exposure of 65% loan to property value.
The investment company will target a dividend yield of circa 6%, with a target yield of 4% to 5% in year one as funds are invested and will aim to be fully invested within six to nine months of the launch.
Investec Bank has been appointed as adviser and sole bookrunner.
The news follows hard on the heels of an announcement by Starwood Capital that it is planning an IPO in the fourth quarter for its European debt investment platform, Starwood European Real Estate Finance (SEREF). The vehicle will seek to raise some £300 mln (EUR 376 mln) in the initial capital raising.
