M7 Multi-let REIT IPO
London-based M7 Multi-let REIT PLC is seeking investment in a £300m IPO on the main market of the London Stock Exchange.
M7, which now manages €4.6bn assets and was established in 2009, will use funds raised to acquire a £119.9m seed portfolio comprising incoming producing assets, so the REIT can start generating immediate returns.
The firm will look to reap the benefits of the UK retail boom – which has rapidly surged in recent years thanks to the success of internet retailers – by investing in industrial and office properties which they will then lease. According to The Telegraph, demand for industrial property is currently extremely high, with demand outstripping supply. The firm will also look to purchase smaller buildings to lease to smaller retailers and other tradesmen.
The £300m M7 Multi-Let REIT IPO will be the largest of its kind in 2017.
Chairman Stephen Smith said of the float:
M7 Multi-Let REIT allows investors the opportunity to benefit from stable income streams which the UK multi-let sector offers, as well as the potential for enhanced returns that can be achieved through the active asset management initiatives that M7 has a strong track record of delivering. The UK private sector is dominated by SMEs, which have consistently demonstrated more stable growth than large businesses and UK multi-let regional real estate assets play a critical part in facilitating that growth.
- The IPO proceeds will be used to acquire a seed portfolio comprising 93 assets
- An issue price of 100 pence per share
- The REIT will target a total shareholder return of 10%
- Targeted quarterly dividend yield of 6.5% per annum
- Offer opens: 12th October 2017
- Offer closes: 22nd November 2017
- Allocation announced: 30th November 2017
This information is issued by, and is the sole responsibility of, SyndicateRoom and any application to participate in the Offer can and will only be made on the basis of the Prospectus, together with any supplements thereto.
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