K&C REIT, an Aim-listed residential real estate investment trust, has announced plans to raise £150 mln (€168 mln) through a share issue to finance new acquisitions.
In a statement, the company said it will issue new shares at 100 pence a share while also undertaking a consolidation of its existing share capital on the basis of 10 existing ordinary shares for one new ordinary share.
The new funds, together with new loans of up to £100 mln, will be used to finance an acquisition pipeline in the UK residential private rented sector which has now reached £400 mln.
In addition, the company also proposes a name change to KCR Residential REIT, conditional upon Shareholder approval, to reflect its diversified UK residential investment strategy.
'Having successfully demonstrated the concept of using a REIT structure to acquire residential property at a significant discount to market value, the Company is now seeking to accelerate its strategy and take advantage of opportunities available to acquire larger portfolios of residential property,' K&C REIT said.
'To fully capitalise on the investment opportunities that we are seeing across the UK market, the Company is seeking to raise the funds required to scale up,' said Dominic White, CEO of K&C REIT. 'With stable and growing rental incomes generating strong yields, the UK private rented residential market is a highly attractive sector. Continuing our UK residential strategy and using the REIT structure, we have the ability to add value through active asset management to generate growth in capital values and rental yields.'
Arden Partners, the company's nominated adviser and broker, is acting as the company's sole bookrunner for the placing.
