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The Local Shopping REIT Plc today joined the London Stock Exchange’s Main Market, becoming the first new UK specialist start-up Real Estate Investment Trust to be admitted to trading since the start of the UK REIT tax regime in 2007.
The Local Shopping REIT (“LSR”) specialises in investing in local shopping assets in the United Kingdom. The Company principally targets neighbourhood and specialist property in urban conurbations and it selectively targets high street assets where it sees good value. The Company aims to offer investors cost-effective access to a fragmented asset class.The company has raised £160 million through its placing and offer, which it proposes to use to grow its highly diversified portfolio of 484 assets located in sustainable locations. The portfolio was valued at £207.7 million in April 2007.
Martin Graham, Director of Markets at the London Stock Exchange, said:
“The Local Shopping REIT is an excellent example of how the creation of a tax-efficient, property investment vehicle has helped to open up new opportunities for investors.The highly specialised nature of its investment strategy would be difficult enough for an in-house property investment team to replicate, but until this year, a listed investment vehicle would have carried a double taxation burden.”
Grahame Whateley, Chairman of The Local Shopping REIT plc, commented:
“We are delighted to have successfully completed our listing on the London Stock Exchange, enabling us to welcome a wide range of investors to the Company.We believe that we are providing a unique opportunity for investors to gain access to a strong and diverse portfolio of local shopping assets, which will benefit greatly from the expertise of our highly experienced management team.”
The Local Shopping REIT is the first property company to list with the intention of electing to become a Real Estate Investment Trust shortly following Admission. It will then join 13 previously listed property companies with a combined market capitalisation of £37 billion now trading as UK REITS on the London Stock Exchange. The London Stock Exchange’s UK REITS are included in the new FTSE EPRA / NAREIT UK index, which forms part of the FTSE EPRA/NAREIT Global REITs and Non-REITs Index Series.
