Residential Secure Income plc, a newly established closed-ended investment company incorporated in England and Wales, has announced its intention to launch an initial public offering (IPO) to raise up to £300 mln (€340 mln).
The company plans to become a REIT with its shares admitted to trading on the main market for listed securities of the London Stock Exchange. The proceeds of the issue will be invested in residential properties that comprise the stock of UK social housing providers.
'Residential Secure Income plc aims to become a long-term capital partner of housing associations and local authorities, enabling them to increase their development of new homes by re-cycling capital whilst continuing to manage, maintain and rent out the homes,' said Baroness Dean of Thornton le Fylde (pictured), chairman of Residential Secure Income plc.
The targeted asset classes comprise shared ownership homes, market rental homes, functional homes and sub-market rental homes throughout the UK.
Residential Secure Income said it was targeting an inflation-linked dividend yield of 5% per annum based on the issue price of 100 pence per ordinary share and a total return in excess of 8% annually. It will pay dividends to shareholders on a quarterly basis in accordance with the REIT Regime.
The company has appointed ReSI Capital Management to act as its alternative investment fund manager (AIFM). ReSI is a wholly-owned subsidiary of TradeRisks Limited, a treasury risk advisory firm and financing arranger focused on social housing, care and other specialist residential property.
