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REIT raises £100m on stock market

The social housing real estate investment trust (REIT) Triple Point has raised £108m on the stock market after issuing a new round of shares.

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Picture: Getty
Picture: Getty
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The social housing real estate investment trust Triple Point has raised £108m on the stock market #ukhousing

According to an update Triple Point issued to the stock market, it received more offers than it had originally sought. Initially, it had planned to issue 100 million shares, but raised this to 105 million following the additional interest.

The REIT plans to use the funds to invest further in the supported housing sector, where it is one of many funds buying specialist housing aimed at adults with learning difficulties and other care needs and leasing it to small housing associations.


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Chris Phillips, chair of Triple Point, said: “We are pleased with the result of this fundraise against a challenging market backdrop and it has given us the opportunity to expand our shareholder base. We appreciate the continued support of our existing shareholders and welcome our new investors.

“With a strong identified pipeline of attractive investment opportunities, we remain focused on continuing to deliver value to shareholders through our selective investment strategy and we look forward to reporting on the group’s further progress over the coming months.”

This is the third time Triple Point has gone to the market seeking investment. Its initial public offering of £200m last August was the most successful, but back in April this year, it only managed to raise £47.5m of the £200m for which it was asking.

Other REITs struggled in the market at that time as well, with some investors citing the troubles of First Priority Housing Association, which in February was censured by the Regulator of Social Housing for a “fundamental failure of governance”.

Following this, the regulator started investigations into three other similar organisations. Triple Point has continued to strike deals with one of these, Inclusion Housing.

Max Shenkman, a partner at Triple Point, said: “The net proceeds of the issue will enable the group to capitalise on the pipeline of specific acquisition opportunities we have identified in the supported housing sector, further diversifying the company’s portfolio by way of both registered provider and geography.

“The market fundamentals remain compelling, underlined by undersupply and strong central and local government support for supported housing, and we are confident of continuing to generate attractive returns for investors.”

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