UK regional property firm lists on London AIM listing

Circle Property has listed on the London AIM stock exchange and recruited former Land Securities chief executive Ian Henderson as chairman.

Circle, a specialist regional UK property investment, development and management company, has placed just over 28 million ordinary shares at a placing price of £1.49 per ordinary share. The company is valued at £42 mln (€54 mln).

Established in 2002, Circle is led by John Arnold and Edward Olins as Chief Executive and Chief Operating Officer respectively, and currently owns a freehold and leasehold portfolio of 16 real estate assets valued at £74 mln.

The Company aims 'to build a portfolio of prime regional offices by adding value to under-utilised buildings, securing lettings swiftly and ahead of competition, thereby generating attractive initial yields'. It is targeting annual total returns in excess of 12% on acquisition and between 15 to 20% on costs of development expenditure including acquisition costs.

'We believe we are extremely well placed to successfully create value, through both the asset management of our current portfolio and sourcing deals for future acquisitions at a time when there is an increasing demand for high-quality regional assets,' Henderson commented.

John Arnold, CEO of Circle Property, added: 'The successful completion of Circle’s IPO is a significant step forward in the evolution of the company. Not only does it provide greater liquidity for shareholders, it also provides us with greater flexibility with which to successfully grow the business. First and foremost we look forward to signing up to a credit committee-approved facility with RBS which is triggered by this admission.'

Peel Hunt is the nominated adviser and sole broker to the company.