19 March 2018
Energiser Investments
plc
('Energiser' or
the 'Company')
Investment of
£1.7m in KCR Residential REIT Plc
Energiser is pleased to confirm it has acquired 2,435,710 new
ordinary shares at £0.70 a share for a total of £1,704,997 in KCR
Residential REIT plc (‘KCR’). The investment, made by
participation in a subscription alongside other investors, has been
made at a 9% discount to net asset value per share of KCR as
reported in its half-yearly report announced on 16 March 2018. This investment by Energiser
represents a 24.7% shareholding in KCR.
The subscription has been funded with cash of £1,210,897 and the
novation of the rights to its loan investment of £494,100 owed to
Energiser by Beta Circle Ltd.
KCR is an AIM quoted Real Estate Investment Trust (‘REIT’)
focused on investment in the UK residential Private Rented Sector
(‘PRS’). It has a portfolio of £9.45 million. KCR
invests in whole apartment blocks of studio, one and two-bedroom
flats, in city centres, close to railway stations and shopping
facilities. It focuses on more affordable rental properties
for private tenants. KCR has a strong pipeline of accretive
opportunities that it is seeking to execute.
Savills reports that the PRS market is £1.3 trillion in size,
44% larger than the entire commercial property market, and only 2%
of it professionally managed. KCR is one of the first quoted
investment companies to focus on investing in and professionally
managing rented residential property in residential private rented
sector.
The Energiser board recognises that there is positive structural
shift underway in residential PRS. With KCR, it has
established a strategic shareholding in a growth company with a
strong management team in a very large, under-managed
sector.
Dominic White, Energiser’s Chief
Executive, is also Chief Executive of KCR. Therefore the investment
in KCR constitutes a related party transaction for the purpose of
AIM Rule 13. With the exception of Dominic
White, the directors consider, having consulted with the
Company's nominated adviser, Cairn Financial Advisers LLP, that the
terms of the transaction are fair and reasonable insofar as its
shareholders are concerned.
Energiser’s investment strategy focus is on the property sector,
where it may invest directly, or through companies in property
equity and loan transactions, and property operating businesses in
quoted or unquoted companies to achieve capital growth.
The Board continues to look for and invest in assets that
achieve its capital growth objectives. We look forward to
updating you on the progress of KCR and other potential investment
transactions in the coming months.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further enquiries, please visit
www.energiserinvestments.co.uk or contact:
Energiser Investments
Plc |
|
Dominic White, Chief Executive |
01494 762450 |
Nishith Malde, Director |
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Cairn Financial Advisers
LLP |
|
Jo Turner |
020 7213 0880 |
Sandy Jamieson |
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