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Residential Secure Income to raise £300M in London IPO

Residential Secure Income Plc is seeking to float on the main market of the London Stock Exchange and raise £300 million through a placing and an offer for subscription of ordinary shares.

The company, which plans to become a real estate investment trust, will invest the proceeds from the IPO in residential asset classes, including shared ownership homes, market rental homes, functional homes and sub-market rental homes, that comprise the stock of mainly housing associations and local authorities in the U.K.

Residential Secure Income will submit an application to admit its ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority and for trading on the main market for listed securities of the London Stock Exchange.

The issue will open during the week of June 19 and close on or around July 6. The shares are expected to be admitted to trading on or around July 12.?

Residential Secure Income is targeting an inflation-linked dividend yield of 5% a year, based on the issue price of 100 pence per ordinary share. The group anticipates total return in excess of 8% a year. Meanwhile, the shareholders of the company will receive dividends on a quarterly basis.

Rt. Hon Baroness Dean of Thornton le Fylde, chairman of Residential Secure Income, said in a news release, "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."

ReSI Capital Management was appointed as the company's alternative investment fund manager.

Meanwhile, Jefferies International Ltd. is the sole sponsor, financial adviser and bookrunner for the offering.