Mill Group Residential has launched what it claims is the first “mainstream residential” real estate investment trust, which it has made available directly via a crowdsourcing platform.
To qualify as a Reit, the company will distribute at least 90 per cent of its profits from its rental business to its shareholders in the form of dividends, which have tax advantages for investors who hold their Reit shares in an Isa or Sipp.
David Toplas, chief executive of Mill Group Residential, said: “With house prices disappearing out of reach for would-be buyers in several parts of the country and mortgage rates expected to rise in 2015, rental demand – and landlords’ incomes – are going from strength to strength.
“Mill Residential Reit will add further value to its portfolio through development and refurbishment, and offer its shareholders a tax efficient, affordable and, when listed, more liquid alternative to owning a self-managed, buy-to-let property.
Gonçalo de Vasconcelos, founder and chief executive officer at SyndicateRoom, adds: “The Mill Residential Reit offers both large and small investors a more liquid way to hold a diverse range of buy-to-let properties in their portfolio, but at a fraction of the cost of owning a property outright.
“That this is the first time a traditional IPO has been combined with crowdfunding is both a testament to Mill Group’s progressive approach and a demonstration of just how sophisticated crowdfunding has become.”