PRS REIT closes £250m placing early after ‘strong support’

PRS REIT, the closed-ended real estate investment trust established to invest in new-build homes in the private rented sector, has announced it will close its share placing a week early due to “strong support and current market conditions”.

The REIT announced a share placing on 31 January to raise £250m of additional capital, and this was originally due to close on 1 March.

The fund now plans to close the placing on 19 February, with the results announced on 20 February, while admission of the shares will become effective on 22 February.

The REIT was set up by sector specialist developer Sigma in 2017, raising £250m in its May IPO. This has now been fully committed ahead of schedule, with ten sites acquired, commenced or secured in the last quarter of 2017 for £11.2m. The first wave of investment will see 1,780 homes delivered, Sigma said.

Sigma added in a January trading update that a further £540m of development opportunities had been identified.

The company declared its maiden dividend of 1.5p per share last month; and declared its net asset value as of 31 December 2017 as 98.2p per share.

N+1 Singer and Stifel Nicolaus Europe are acting as joint bookrunners to the company on its share placing.