Private rented sector fund raises £250m

Grant Prior 5 years ago
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The first quoted real estate investment trust to focus on investing purely in the private rented sector has raised £250m.

The Government’s Homes and Communities Agency has made a direct investment of £25m in the The PRS REIT plc

First dealings in shares are expected on May 31 and the shares will trade on the Specialist Fund Segment of the Main Market of the London Stock Exchange.

The net proceeds of £245m will be used to invest in a portfolio of newly-constructed residential PRS sites of multiple units.

These units will mainly comprise family homes and be located across sites in cities and towns in regions across England, with a focus on the main conurbations and largest employment centres outside London

Steve Smith, Chairman of the Company said: “The launch of this PRS REIT breaks new ground, since it is the first REIT to focus purely on the private rented sector.

“We’re delighted to report that our target of £250m gross has been raised, with the fundraising significantly oversubscribed. Investors include some of the UK’s leading institutions as well as a strong base of qualifying private investors.

“Furthermore, the support of the Government’s Homes and Communities Agency as a cornerstone investor underlines our confidence in our approach, which is to establish investment-grade, professionally managed new family homes for rent at scale across the regions in England.

 “We believe that The PRS REIT has the potential to deliver an attractive level of dividend income together with the prospect of capital growth.”

N+1 Singer acted as financial adviser and joint bookrunner on the £250m IPO for The PRS REIT

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