ICG-Longbow said its Senior Secured UK Property Debt Investments (ICG-Longbow SSUP) vehicle has raised £104.6 mln (€122 mln) through a placing to institutional and other investors.
ICG-Longbow said its Senior Secured UK Property Debt Investments (ICG-Longbow SSUP) vehicle has raised £104.6 mln (€122 mln) through a placing to institutional and other investors.
ICG-Longbow, a 51% subsidiary of Intermediate Capital Group and investment manager of the fund, said nearly 104 million ordinary shares were admitted to trading on the main market of the London Stock Exchange at a price of £1.00 per share.
The new listed fund will provide senior secured loans to assist in the acquisition and refinancing of commercial property across the UK. As such, the vehicle will provide investors with direct access to this asset class and in a liquid structure for the first time, the company said.
The vehicle will target the development of a portfolio of newly originated loans, secured by fixed charges on quality income producing investments. It is aiming to provide a dividend income of circa 6% per annum once fully invested.
Jack Perry, chairman of ICG-Longbow SSUP said the operation was 'a great achievement'. 'We are currently seeing a significant shortfall in the supply of senior debt to the UK commercial property sector. We are delighted to offer investors an opportunity to participate directly in newly originated senior loans, underpinned by attractive credit fundamentals. These features should combine to result in predictable investor returns.'
The listing of ICG-Longbow SSUP was sponsored by Investec Bank, and supported by ICG-Longbow. The investment strategy and loan origination within ICG-Longbow is being led by partner Graham Emmett.
