- Closed-end real estate investor UK Residential REIT said it was planning a £150 million initial public offering.

The trust said it would invest in a portfolio of affordable, residential properties in 'strong' UK rental markets outside of prime central London.

It said it planned to use the IPO proceeds to acquire a £145 million seed portfolio of 28 properties, comprising 1,214 residential units, and was targeting a dividend yield of 5.5% per year.

Shares would be issued at £1.00 each and the company was expected to have a market capitalisation following acquisition of the seed assets of £200 million.

UK Residential REIT said it had identified a £440 million pipeline of further investment opportunities and expected the balance of the net proceeds to be invested within 12 months of admission.

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