Fundamentum Supported Housing REIT IPO - Now CLOSED

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The Fundamentum Supported Housing REIT IPO

23rd July 2018

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR TO ANY NATIONAL, RESIDENT OR CITIZEN OF THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM)

Fundamentum Supported Housing REIT Plc - Offer Overview

  • Name: Fundamentum Supported Housing REIT
  • Sector: Real Estate
  • Market: London Stock Exchange-Premium Listing, Main Market
  • Raising: Up to £150m
  • Price: 100p
  • Target Yield: 5% p.a.

About Fundamentum Supported Housing REIT Plc:

Driven by the shortage of social housing in the UK, Fundamentum Supported Housing REIT (FSHR) focus on providing housing for those living with disabilities, with figures showing over 900,000 adults who still need to be appropriately housed. FSHR aims to adopt a clear investment strategy, investing in assets backed by pre-agreed leases with local authorities, prior to purchase. The group anticipates that Supported Housing assets to be acquired/held will amount to at least 80 per cent of Gross Asset Value, with General Needs Housing accounting for 20 per cent of Gross Asset Value. Assets acquired will already be associated with the supported housing sector and will not forward fund the development of assets, however acquired assets may require refurbishment and initial maintenance. The company will have no direct contact with tenants but will deal directly with lease holders such as local housing authorities. The team has over 40 years of combined industry experience.

Use of Proceeds

To raise funds for the purpose of investment in accordance with the investment objective and investment policy of the company, with the intention of deploying proceeds within 12 months of admission.

Website:            http://www.fundamentum-supportedhousing.com/

Expected Timetable

  • Offer Open

    10th April 2018

  • Books Close:

     27th April 2018 at 11am

  • Allocation announced:

    30th April 2018

  • Trading begins:

    14th May 2018


Highlights (as indicated by the company)
  • Low risk of payment default by tenants
  • 5% p.a. target dividend
  • Long term inflation linked lease agreements with registered providers, reducing risk of default payments
  • Clear, set investment objectives and criteria
  • No risk of default by developers as assets will not be forward funded

Risks*
  • Reduced funding for the housing of vulnerable individuals may lead to a fall in demand, impacting revenues
  • The groups portfolio is highly linked to the UK economy and property market
  • Liquidity risk
  • Concentration risk
  • Changes in regulation may impact the way the group is able to operate or their underlying profits
  • Default payments by tenants
  • Competition for assets
  • Valuation risk
  • The company may be subject to liability following disposal of investments
  • With higher rates of inflation rental income pay not increase in line with inflation
  • Lack of borrowing may result in the company being unable to meet its dividend targets in accordance with its dividend policy
  • Risks associated with the REIT status of the company
  • All other risks associated with the real estate sector, and REIT industry
  • All other risks associated with LSE listed stocks

*Please note that these risks represent the judgement of Cornhill Capital, there may be additional risks represented in the prospectus


Offer Documents

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This announcement has been prepared and is the sole responsibility of Cornhill Capital Limited of 4th Floor, 18 St Swithins Lane, London, EC4N 8AD, which is an authorised person for the purposes of the Financial Services and Markets Act 2000.

This announcement is not an offer of securities for sale in the United States. The securities to which this announcement relates have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not he offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offering of the securities in the United States.