Leicester-based Mattioli Woods is to launch a new €157 mln real estate investment trust on the London Stock Exchange at end-March.
Leicester-based Mattioli Woods is to launch a new €157 mln real estate investment trust on the London Stock Exchange at end-March.
The new tax-efficient vehicle, Custodial REIT, will be seeded by a nationwide portfolio of 48 assets split across all property sectors: offices, industrial, retail, hotels, car showrooms and restaurants, and 90 separate tenancies.
The portfolio will have an average unexpired lease term of 8.63 years to first break in tenants' leases. The properties will be managed by subsidiary Custodian Capital. This team is spearheaded by managing director Richard Shepherd-Cross who has 20 years' experience in the property investment market.
The IPO for the purchase of ordinary shares in Custodian REIT is targeting a fundraising of £50 mln, which is forecast to be invested in a diverse portfolio of commercial properties over the next nine to 12 months, to enhance the initial portfolio of £100 mln. Custodian REIT's target distribution yield is 5.25% of NAV in year one, and 6.25% thereafter.