Member Article

New London investment firm reveals intention to float

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.

The London-based firm is seeking to raise up to £300m via a placing and an offer for subscription of ordinary shares in the capital of the business.

The company intends to become a real estate investment trust and the proceeds of the issue will be invested in residential asset classes that comprise the stock of UK social housing providers.

The pressure to build more homes combined with reduction of new UK Government grant is encouraging Housing Associations in the UK to seek new alternative financing routes to support their development plans, including diversifying into other activities to generate profits to replace grant and creating growth plans that do not rely on assets being held on Housing Association balance sheets.

Similarly, many Local Authorities in the UK are focusing on increasing housing stock in their areas and are seeking private capital to facilitate this development and create new revenues streams to offset reductions to grant funding from the UK Government.

The business therefore seeks to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources, allowing them to re-cycle capital back into economically beneficial new developments.

Rt. Hon Baroness Dean of Thornton le Fylde, Chairman of Residential Secure Income plc, said: “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.”

It is currently expected that the Prospectus will be published and the Issue will open during the week commencing 19 June 2017 with the Issue closing on or around 6 July 2017.

Admission and the commencement of trading are currently expected to take place on or around 12 July 2017.