Residential REIT joins AIM

In addition, on Admission, the Company has agreed to acquire Silcott Properties Limited for a consideration of £3,630,00. Silcott is the owner of 25 Coleherne Road, a 3,976 sq. ft. residential building in Chelsea, London, comprising ten studio apartments. 25 Coleherne Road was valued at £4 million on 22 June 2015. The Group also owns a further three smaller properties.
 
K&C will generate income and capital growth through the tax-efficient acquisition of residential property special purpose vehicles with inherent capital gains and then add value to the portfolio post-acquisition.
 
The Directors have identified a number of SPVs that they believe are suitable acquisition targets and non-binding letters of intent are in place for opportunities of over £40 million in aggregate.
 
Commenting, K&C's CEO, Tim James said:
 
"We are delighted to complete our IPO and to start trading on AIM. Our plans are advanced, with our first acquisition of Silcott announced alongside our Admission to AIM. 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 £40 million. We know that the opportunity is there.
 
"As a REIT, we will have the ability to purchase properties at a discount to market value and will look to increase value through active asset management, aiming to generate growth in capital values and rental yields. 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 £500 million. K&C provides an exit strategy for vendors of SPVs and attractive yields to investors."