First PRS REIT commences trading

June 2, 2017 / Isla MacFarlane
First PRS REIT commences trading

The government-backed REIT, the first to invest exclusively in build to rent developments, has been admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange.

The REIT, advised by Sigma Capital, raised £250 million in its initial public offering.

G10 Capital Limited has been appointed as Alternative Investment Fund Manager; Nplus1 Singer Advisory LLP acted as financial adviser and joint bookrunner; and Stifel Nicolaus Europe Limited acted as joint bookrunner.

Stephen Smith, Chairman of the Company, said, “First dealings in the shares of The PRS REIT plc commence today and I’m delighted that its launch has been so well-supported by both institutional and qualifying private investors.  We are especially pleased that the Government’s Homes and Communities Agency is supporting the PRS REIT with a direct investment.  There is a structural undersupply of new homes in the UK and we believe that institutional investment into the Private Rented Sector market will help to provide much needed supply.”

Graham Barnet, Founder and Chief Executive of Sigma Capital Group, said, “This is the first quoted REIT established to invest in opportunities in the Private Rented Sector and we believe it presents investors with an attractive investment opportunity.

“There are unprecedented levels of demand for new rental homes and the market for family houses is particularly under-supplied.  The PRS REIT will be focused on high quality family housing for those earning within the UK’s average household income band. We look forward to helping to establish what we hope will be one of the largest PRS portfolios in the UK.”

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