Banking on the softer supply of assets that can meet the increasing demand for various forms of care for the U.K.'s aging population, a new healthcare REIT has filed a prospectus for a £160 million IPO in London.
Impact Healthcare REIT Plc is offering 160 million new ordinary shares, priced at 100 pence apiece. It expects to net £157 million from the offering, including the minimum £10 million that it expects to gain from the subscription of shares by Mahesh Patel and associates, who are the sellers of the REIT's seed portfolio. The vendors can own a stake of up to 18.8% in the REIT.
The initial portfolio of the REIT comprises 54 homes with 2,362 beds across the U.K., all managed by Minster Group and Croftwood Group. The properties, along with a 196-bed portfolio the company has an option to buy, were valued by Cushman & Wakefield at roughly £152.8 million, as at Dec. 31, 2016. Impact Healthcare REIT added that it has other properties in its acquisition pipeline.
The subscription and placement of the company's shares will run from Feb. 28 to March 1, and the REIT expects to be admitted on the specialist fund segment of the London Stock Exchange's Main Market on March 7 at 8 a.m. local time, under the IHR ticker.
As a U.K. REIT, the company will distribute at least 90% of its qualifying profits to shareholders. The dividend for the first 12 months from its admission is expected to provide a 6% annual yield on its IPO price, subject to certain conditions. The first dividend is scheduled to be declared in July, in time for an August payout.
The London-based company's chairman is Rupert Barclay, with Rosemary Boot, David Brooks and Philip Hall serving as directors. Impact Healthcare REIT's investment adviser is Impact Health Partners LLP.
Impact Healthcare REIT was incorporated Nov. 7, 2016, with a focus on the acquisition, ownership, leasing, renovation, extension and redevelopment of high-quality healthcare properties in the U.K. The properties will then be leased primarily to healthcare operators, according to the filing.
Winterflood Securities Ltd. is the sole book runner and placing agent for the IPO.