LONDON (Alliance News) - Liberty Living PLC said Monday it intends to launch an initial public offering of its shares as it plans to list on the main market of the London Stock Exchange.
In a statement, Liberty Living, which wants to acquire the property portfolio of Brandeaux Student Accommodation Fund (Sterling) Ltd, as well as its external property manager, said it aims to become an income-focused UK student accommodation real estate investment trust.
Liberty Living said no less than 50% of its share in issue will be included in the offer, which is being made to institutional investors. Up to 10% of the shares offered will be included in an over-allotment option.
Morgan Stanley & Co International PLC is the joint sponsor of the deal, while Morgan Stanley Securities Ltd is acting as joint global co-ordinator, joint sponsor and joint bookrunner.
Liberty Living said it will own and operate a GBP1.1 billion portfolio of modern and well-maintained properties, consisting of 16,827 rooms for the 2013/14 academic year across 42 residences in 17 towns and cities across the UK. On admission, it will have a GBP809.0 million European Public Real Estate Association, net asset value. According to the company, this equates to a 9.5% share of the private purpose-built student accommodation market, excluding operators managing for third party owners.
Liberty Living said it intends to pay a 2.3 pence dividend per share for the year ending August 31, 2014, equivalent to two months' of the 13.7 pence that would be paid for a full-year.
"Liberty Living offers investors access to an established and proven income-oriented student accommodation business. It operates in a market which benefits from attractive fundamentals, including an ongoing supply and demand imbalance, and limited correlation with economic cycles," Executive Chairman Roger Boyland said in a statement.
"Our GBP1.1 billion portfolio of high quality accommodation, which generates over GBP80 million of annual income, has delivered a core occupancy rate of 99% over the past five years, supported by our partnerships with 35 leading Educational Institutions," Boyland added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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