LONDON (Alliance News) – A real estate investment trust backed by insurer Aviva PLC is to launch a GBP200 million London initial public offering with admission scheduled for December 8.
Shares of the REIT are expected to be admitted to trading on December 8, after an initial prospectus was published Tuesday.
Aviva Investors Secure Income REIT PLC, a newly established investment company, said on November 7 that it will raise new capital via share placing and a subscription agreement with a unit of Aviva. The company plans to list its shares on the Main Market of the London Stock Exchange.
Aviva expects to support the IPO with a direct investment of 19.99% of the gross issue proceeds.
Aviva Investors Secure Income REIT plans to invest in a diversified portfolio of high quality, long-lease commercial real estate assets located within the UK and leased to predominantly investment grade tenants.
The new REIT is chaired by Andrew Cunningham, the former chief executive of Grainger PLC. Aviva Investors UK Fund Services Ltd is acting as the company’s investment manager.
“The current environment of low interest rates and rising inflation is particularly favourable for long income real estate investments. Our strategy aims to provide a compelling risk return profile that offers secure income as well as lower volatility and lower capital value risk compared to traditional real estate investments, which we have a strong track record of delivering through investing in secure and long income real estate,” said Renos Booth, Head of Real Estate Long Income at Aviva Investors.
Jefferies International Ltd is acting as sole sponsor, global coordinator, book runner and financial adviser in relation to the IPO. Scott Harris UK Ltd is acting as intermediaries offer adviser.
By Gem Sofianos; firstname.lastname@example.org
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