M7 Multi-let REIT IPO

M7 Multi-Let REIT IPO Offer - Now CLOSED

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The M7 Multi-Let REIT IPO is now CLOSED

19th June 2018

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The M7 Multi-Let REIT plc - IPO Overview

IPO UPDATE AND ANNOUNCEMENT

M7 Multi-Let REIT plc, a newly established closed-ended investment company, announces that it has decided not to proceed with its planned Initial Public Offering at the current time.

The Company received an encouraging response from prospective investors and the process has resulted in a number of these providing private funding to acquire the initial portfolio of properties ("Initial Portfolio") and pursue the pipeline opportunities that have been assembled (the "Pipeline").

Richard Croft, Chief Executive Officer of M7 Real Estate, commented: "Throughout the IPO process we received positive feedback and a strong level of investment indications from prospective investors. However, a number of investors expressed an interest in acquiring the Initial Portfolio privately. This, combined with the current market conditions and the volume of recent issuances focusing on UK real estate, led the Board to conclude that the Initial Portfolio and Pipeline would be better funded privately over the near to medium term. We are grateful for the support and commitment of the investor community and may revisit a potential listing over the coming 12 months."

 

 

M7 Multi-Let REIT plc, a newly established closed-ended investment company, announces its intention to raise up to £300 million by way of a placing, offer for subscription and intermediaries offer of ordinary shares in the capital of the Company (the “Ordinary Shares”) at an issue price of 100 pence per share.

The Company will apply for admission of its Ordinary Shares to the premium listing segment of the Official List of the UK Listing Authority and to trading on the Main Market of the London Stock Exchange.

 

 

Expected Timetable

  • Offer Open

    10th October 2017

  • Offer Closes:

    Friday 24th November 2017 

  • Allocation announced:

    27th November 2017

  • Trading begins:

    Late November/early December 2017


About M7 Multi-Let REIT Plc

According to the company, the M7 Multi-Let REIT will focus on multi-let real estate assets in the UK, a sector which the Directors and the Investment Manager believe is often overlooked due to the small individual lot sizes and the management intensive nature of the underlying assets. However, multi-let real estate is important to small and medium sized enterprises (“SME”) in the UK, and the Directors and Investment Manager believe there is an opportunity to build a diversified portfolio of assets, delivering an attractive Total Shareholder Return, with a focus on dividend income. The investment objective of the Company is to deliver an attractive Total Shareholder Return, with a particular focus on dividend income.

Following Admission and completion of the Initial Acquisitions, the Group expects to use the remaining proceeds of the Issue to acquire further assets which meet the Company’s Investment Guidelines. Potential assets have been identified through the Investment Manager’s and its 54 affiliates’ extensive contacts and relationships in the UK real estate sector and its leading in-house information and data systems, and are available for potential acquisition in the near term. The identified pipeline comprises assets and portfolios with an estimated value in excess of £400 million, comprising more than 100 regional light industrial and regional office assets.

 

Highlights
  • Offer priced at 100p per share
  • Diversified portfolio with a focus on regional light industrial and office assets
  • Seed portfolio of assets valued at £119.9m to be acquired at IPO, comprising 93 assets
  • Highly visible future pipeline already identified
  • Target total shareholder returns of c.10%, once fully invested, and target quarterly dividend yield of c.6.5% per annum, once fully invested
  • Highly experienced management team –M7 as Asset/Investment Manager and a strong Independent Board

Risks

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

  • The performance of the Company would be adversely affected by a downturn in the property market in terms of market value or a weakening of rental yields
  • Investments in property are inherently illiquid. Such illiquidity may affect the Company’s ability to vary its portfolio or dispose of or liquidate part of its portfolio in a timely fashion and at satisfactory prices. This could have an adverse effect on the Company’s financial condition and results of operations
  • The value of property and property-related assets is inherently subjective due to the individual nature of each property. As a result, valuations are subject to substantial uncertainty. There can be no assurances that the estimates resulting from the valuation process will reflect actual realisable sale prices
  • The Company is a newly incorporated company which has no track record of past performance

Offer Documents

Important information

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Investments in pre-IPO’s and IPO’s involve a high degree of risk and are not suitable for all investors. A pre-IPO issue is the funding given to the company before listing. There is no guarantee that the company will list, but if it does then there is normally an increase from the pre-IPO to the IPO price, representing a profit. However, even when a company is listed on, say,  the AIM market, it is considered to be a high-risk investment, and will have wider spreads on price and be more illiquid and it may be difficult to sell the shares on a short-term basis and in some circumstances it may be difficult to sell at any price. All investments made into an IPO or new issue or in a secondary issue should always be made solely on the basis of the information provided in the relevant prospectus and any other supplementary documentation. The specific risks will be detailed in the prospectus but the value of your investment can go down as well as up and you may not get back the money you invested.  You should be sure that you fully understand the purpose of, and the reason for, the fundraising. Before you decide to invest you should obtain information regarding the business plan and note the risk factors. If you have any doubts about the suitability of an investment you should seek professional advice.

This announcement has been published by Cornhill Capital Limited.