Real estate property investment to launch on LSE
The investment objective of the new Starwood European Real Estate Finance company is to find and fund “compelling real estate opportunities” across Europe and to harvest returns from it, according to Jeffrey Dishner, president of Starwood Capital Europe.
Today (13 December), an announcement made to the exchange revealed that the new company has closed its initial public offering, having raised £228.5m gross.
Stephen Smith, chairman of the company, said: “We are pleased to have received such broad demand for the IPO, which is the largest investment company launch and the second largest IPO fundraising on the premium segment of the UK Official List this year.”
The company will provide senior, whole loan and mezzanine financing to the property sector across Europe - offering an alternative source of capital to those who have not found the banks as ready to lend.
Investment objective: To provide shareholders with regular dividends and an attractive total return.
Net target return: 8 per cent to 9 per cent a year
Dividend: A targeted 7p dividend, once fully invested paid quarterly. A dividend of at least 3.5p is planned for the first year as funds are invested.
Sponsors: Dexion Capital plc and Jefferies International Limited are acting as joint sponsors, joint financial advisers and joint bookrunners.
Expected Admission and commencement of unconditional dealings in the shares: 8am, 17 December