Urban Exposure plans GBP500m LSE listing
Urban Exposure Real Estate is planning to launch an initial public offering (IPO) of ordinary shares on the London Stock Exchange at an issue price of GBP10 per share.
The company is raising capital by way of a global placing to eligible institutional investors in certain jurisdictions, a subscription for shares by the investment manager and a private placing to a cornerstone investor.
The ordinary shares will be priced at an issue price of GBP10 per ordinary share.
The company will invest in secured residential-led real estate development project loans, with a primary focus on projects in London and the South East. In many cases the company will also be entitled to a profit share in development projects to which it is a lender in order to capture a share of any equity upside arising from those projects. The company will aim to generate a gross internal blended rate of return across the portfolio of 14 per cent and will seek to achieve a blended portfolio loan to estimated gross development value (GDV) ratio of approximately 60 per cent.
Urban Exposure is seeking to raise gross proceeds from the issue of GBP500 million, with an over-allotment option equal to 10 per cent of the total number of the ordinary shares in the issue before exercise. The company has received a binding commitment from EJF Capital to invest GBP75million. Urban Exposure anticipates that the net proceeds should be substantially fully committed within 12 months of admission.
Urban Exposure Investment Management has been appointed as the investment manager of the company, authorised and regulated by the Jersey Financial Services Commission.
It is expected that Admission will become effective and that unconditional dealings in the ordinary shares will commence during July 2014. The company expects to be included in the FTSE UK Index Series following Admission.
- By Category
- News from other sites
- Special Reports
- Partner events