The UK's Independent Living, a firm addressing residential shortages in the supported housing space, has announced its intention to launch an initial public offering (IPO).
The firm is seeking to raise target gross issue proceeds of £150 mln (€172 mln) through the issuance of new ordinary shares in the company by way of a placing, offer for subscription and intermediaries offer.
Independent Living and will apply for those shares to be admitted to the official list of the Financial Conduct Authority and to trade on the premium segment of the London Stock Exchange's main market.
The company intends to become a real estate investment trust (Reit) once it has completed the acquisition of an initial portfolio of target assets. Supported housing provides accommodation, alongside support, supervision or care, to help people live as independently as possible in the community.
Fiona Miller Smith, chair of Independent Living, commented: 'The number of vulnerable people relying on supported housing is set to significantly increase over the coming years, whilst the structural undersupply of appropriate accommodation remains. We aim to address this rising demand and limited supply by leasing affordable, dedicated housing to housing associations via a well-governed and compliant model.
'We have specifically designed Independent Living REIT plc following extensive dialogue with the Regulator of Social Housing. Our model delivers a long-term, financially sustainable approach that benefits local authorities, residents and investors. By delivering safe housing for vulnerable members of the community, we will provide a clear and measurable impact to society.'
The company's target groups in the areas of supported housing include specialised supported housing, i.e. accommodation designed for adults with learning difficulties, mental health issues or physical disabilities, as well as housing for the homeless and extra care facilities for adults aged 55 and over which include third party care provision.
The company's management team is backed by the Atrato Group platform, which is also the investment adviser to Supermarket Income Reit, a company which has registered successes in the acquisition of grocery stores in recent years.
David Blakeborough, managing director, Atrato Partners commented: 'Well-designed and appropriately priced supported housing delivers capital growth and inflation-linked income returns for investors, savings for the UK taxpayer, and improved outcomes for residents.
'Following our discussions with the Regulator, we are excited to have built a model that will help address the significant shortage of high-quality supported housing in the UK.'
While Atrato Group is investment adviser to Independent Living, RBC Europe Limited, trading as RBC Capital Markets, is acting as sole sponsor, broker and bookrunner to the company. Solid Solutions Associates is acting as intermediaries offer adviser.
Results of the initial issue are expected to be published on 30 September, with the admission and commencement of dealiings planned for 4 October.
