Social housing investment trust plots £250m-plus IPO this month
A new investment trust with a focus on social housing will this morning announce its intention to float on the London Stock Exchange’s main market.
Civitas Social Housing is aiming to raise in excess of £250m through the initial public offering (IPO) on 18 November. The amount raised will also match the value of the company.
Read more: Meet the companies preparing to brave London's stormy IPO market this week
Civitas is announcing plans to float following a month in which several other companies – including Pure Gym, TI Fluid Systems and Misys – pulled IPOs after failing to find sufficient investor interest.
“We’ve had a really fantastic roadshow,” chief executive Paul Bridge told City PM “Because this provides investors with a low-risk opportunity in a sector that’s never suffered a credit loss, with an attractive yield, we’ve had very good discussions with a range of different institutions over the last few weeks.”
Cenkos Securities is bookrunner to Civitas with Zeus Capital acting as joint bookrunner.
The investment trust will be targeting built social housing, therefore avoiding development risks.
Read more: Asset manager plans £200m investment trust IPO
Bridge said: “There is a significant need for additional social housing across England and Wales. Meeting this need requires innovative solutions to support the current network of providers.
“This includes enabling providers to gain access to capital that is currently tied up in existing housing stock. Releasing this capital will allow providers to fund the additional developments required to increase social housing.
“With the team’s experience, knowledge and relationships in the social housing sector, Civitas Social Housing PLC is well positioned to play a role in this important process.”