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LONDON (Alliance News) - K&C REIT PLC shares were trading slightly ahead of their issue price as the Central London-focused residential real estate investment trust made its debut on London's AIM market.
The shares, which were issued at 10 pence each, were trading at 10.25p on Friday morning.
K&C was valued at GBP4.4 million by market capitalisation on joining AIM.
K&C, which raised GBP3.57 million before expenses in its initial public offering by selling 34.5 million shares, said it has agreed to buy Silcott Properties Ltd, the owner of a 3,976 square foot residential building in Chelsea, London, for GBP3.63 million.
The acquisition, which consists of ten studio apartments at 25 Coleherne Road, was valued at GBP4 million on June 22, K&C REIT said. It also owns a further three small properties. Coleherne Road is near the Earl's Court underground station.
"Our intention is to provide investors with an opportunity to gain exposure to the Central London residential property market, one of the most resilient sectors of the UK housing market over the past few decades and, to that end, we have identified, and have letters of intent in place, for properties worth in excess of GBP40 million. We know that the opportunity is there," Chief Executive Tim James said in a statement.
The CEO said the company's status as a real estate investment trust allows its to buy properties at a discount to market value.
"Our management team will use their many years of expertise and will exploit our long-term relationships in the Central London residential market to build a portfolio in excess of GBP500 million. K&C provides an exit strategy for vendors of [special purpose vehicles] and attractive yields to investors," James said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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