UK property company Rugby Estates has announced that its new company, Rugby Estates Investment Trust (REIT), intends to raise about £47 mln (almost EUR 70 mln) through a listing on London Stock Exchange's main market. The company will convert to real estate investment trust (REIT) status within 12 months. Rugby Asset Management, a wholly-owned subsidiary of AIM-listed Rugby Estates, has been appointed as property adviser to REIT Group.
UK property company Rugby Estates has announced that its new company, Rugby Estates Investment Trust (REIT), intends to raise about £47 mln (almost EUR 70 mln) through a listing on London Stock Exchange's main market. The company will convert to real estate investment trust (REIT) status within 12 months. Rugby Asset Management, a wholly-owned subsidiary of AIM-listed Rugby Estates, has been appointed as property adviser to REIT Group.
Rugby Estates said REIT’s strategy will be to establish a property portfolio that is diverse by sector, tenant and size, mainly by property-owning companies with latent tax liabilities that can be extinguished under the REIT rules.
The company's key criteria for acquisitions will be the potential for rental and capital growth of the underlying assets through active property management.
Rugby Estates said the typical target companies are expected to be controlled by individuals, families or family trusts that have assembled a mixed portfolio of properties over a number of years. These target companies with a portfolio value between £5 mln and £100 mln, 'have been conservatively managed, thus with potential to release latent value through more proactive management'.
