PRS REIT, which was launched last year to invest in new build, private rented sector (PRS) homes,
said that it has raised gross proceeds of £250 mln (€283 mln) through the placing of 244 million shares at a price of 102.5 pence per share.
The company, which will use the proceeds to build up a large scale portfolio of newly-built homes, counts the UK Government’s Homes England (formerly known as Homes and Communities Agency) among its shareholders, with a £30 mln direct investment.
PRS REIT is targeting a dividend yield of 6% or more pre annum and net total shareholder returns of 10% or more per year.
It intends to expand its portfolio through the collaboration with house building partners, Countryside Properties, Keepmoat Homes and Engie Regeneration as well as through its existing investment pipeline covering 3,800 new homes.
'We are delighted to have raised £250 mln in this second round of funding for the PRS REIT, some
eight months after its IPO last May, when we raised £250 mln,' said chairman Steve Smith. 'The placing has been supported by existing shareholders and we are pleased to welcome new investors.'
He added: 'We believe we are the only PRS operator building new family houses to this scale across England.'
