ICG-Longbow Senior Secured UK Property Debt Investments has raised GBP104.6m through a placing to institutional investors and other investors.
A total of 104,619,250 ordinary shares have been admitted to trading on the Main Market of the London Stock Exchange at a price of GBP1.00 per share.
ICG-Longbow SSUP will provide senior secured loans to assist in the acquisition and refinancing of commercial property across the UK. As a listed vehicle, investors will have direct access to this asset class in a liquid structure for the first time. A dividend income of circa six per cent per annum is targeted once fully invested.
The investment objective of the company will be to construct a portfolio of newly originated loans, secured by first ranking fixed charges on quality income producing investments, in support of well capitalised borrowers who can demonstrate a track record in asset management.
The company has appointed ICG- Longbow Real Estate Capital as the investment manager. The investment strategy and loan origination within ICG-Longbow is being led by Graham Emmett, partner.
Jack Perry (pictured), chairman of ICG-Longbow SSUP, says: “Raising over GBP100m in what is currently a very difficult fund raising environment is a great achievement. The success is a testament to the experienced ICG-Longbow team and the design of the product. A six per cent pa dividend yield from a diversified senior loan portfolio is attractive and there has been significant demand from investors looking to diversify their portfolios into new investment opportunities. We are currently seeing a significant shortfall in the supply of senior debt to the UK commercial property sector. We are delighted to offer investors an opportunity to participate directly in newly originated senior loans, underpinned by attractive credit fundamentals. These features should combine to result in predictable investor returns.”