A new real estate investment trust, called Mill Residential, has launched on the Alternative Investment Market with help from a crowdfunding platform.
Gonçalo de Vasconcelos, founder and chief executive of crowdfunding platform SyndicateRoom, said this was the first time an initial public offering had been able to harness investment from both crowdfunding investors and institutional buyers.
He said: “This successful IPO is testament to the innovation that the financial services industry is going through, with SyndicateRoom as a frontrunner of equity crowdfunding.”
Shares in the Mill Residential Reit are now trading on Aim. They began trading today (23 December) at 105p each, and shareholders will be paid dividends twice a year.
The company is targeting a net dividend yield of 3 per cent a year and a total return of 10 per cent a year.
People who hold their shares in an Isa or self-invested personal pension will receive their dividends free of tax.
The company, which invests in buy-to-let property, has a market capitalisation of £3.5m and holds a portfolio of residential properties across the UK. It has been designed to offer investors a highly liquid and tax-efficient way to gain exposure to the buy-to-let market, without the cost or hassle of owning property directly.
The SyndicateRoom platform, which is used by both angel investors and sophisticated private investors and has a minimum investment requirement of just £1,000, smashed its fundraising target of £2.1m in just three weeks.
Marcus Stuttard, head of Aim, said: “This transaction demonstrates how Aim can provide structured support to crowdfunded ventures, and help provide a straightforward exit environment for early stage investors.”