Social housing trust raises £180m in IPO

Investing in residential propertyy

The Residential Secure Income investment trust has raised £180m in its recent IPO, just over half of its £300m target.

The trust announced its intention to float and raise £300m last month for a trust which would provide secure, long-dated, inflation-linked income returns with the potential for capital growth and with low sensitivity to residential house prices. The trust intends to invest the proceeds of the IPO by acquiring residential assets from housing associations and local authorities. Homes acquired will be on a freehold or long leasehold basis and will be limited to those with sufficient cashflow. This will allow the manager to arrange long-term investment grade equivalent debt. Where a...