Energiser Invts PLC Investment of GBP1.7m in KCR Residential REIT Plc
19 March 2018 - 6:00PM
UK Regulatory
TIDMENGI
19 March 2018
Energiser Investments plc
('Energiser' or the 'Company')
Investment of GBP1.7m in KCR Residential REIT Plc
Energiser is pleased to confirm it has acquired 2,435,710 new ordinary shares
at GBP0.70 a share for a total of GBP1,704,997 in KCR Residential REIT plc ('KCR').
The investment, made by participation in a subscription alongside other
investors, has been made at a 9% discount to net asset value per share of KCR
as reported in its half-yearly report announced on 16 March 2018. This
investment by Energiser represents a 24.7% shareholding in KCR.
The subscription has been funded with cash of GBP1,210,897 and the novation of
the rights to its loan investment of GBP494,100 owed to Energiser by Beta Circle
Ltd.
KCR is an AIM quoted Real Estate Investment Trust ('REIT') focused on
investment in the UK residential Private Rented Sector ('PRS'). It has a
portfolio of GBP9.45 million. KCR invests in whole apartment blocks of studio,
one and two-bedroom flats, in city centres, close to railway stations and
shopping facilities. It focuses on more affordable rental properties for
private tenants. KCR has a strong pipeline of accretive opportunities that it
is seeking to execute.
Savills reports that the PRS market is GBP1.3 trillion in size, 44% larger than
the entire commercial property market, and only 2% of it professionally
managed. KCR is one of the first quoted investment companies to focus on
investing in and professionally managing rented residential property in
residential private rented sector.
The Energiser board recognises that there is positive structural shift underway
in residential PRS. With KCR, it has established a strategic shareholding in a
growth company with a strong management team in a very large, under-managed
sector.
Dominic White, Energiser's Chief Executive, is also Chief Executive of KCR.
Therefore the investment in KCR constitutes a related party transaction for the
purpose of AIM Rule 13. With the exception of Dominic White, the directors
consider, having consulted with the Company's nominated adviser, Cairn
Financial Advisers LLP, that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.
Energiser's investment strategy focus is on the property sector, where it may
invest directly, or through companies in property equity and loan transactions,
and property operating businesses in quoted or unquoted companies to achieve
capital growth.
The Board continues to look for and invest in assets that achieve its capital
growth objectives. We look forward to updating you on the progress of KCR and
other potential investment transactions in the coming months.
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
For further enquiries, please visit www.energiserinvestments.co.uk or contact:
Energiser Investments Plc
Dominic White, Chief Executive 01494 762450
Nishith Malde, Director
Cairn Financial Advisers LLP
Jo Turner 020 7213 0880
Sandy Jamieson
END
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