News

17th Nov

UNITE to Join Retail Bond Issuers on ORB

Retail Bond Expert has learned today that UNITE Group is the latest property company to consider issuing a retail bond. UNITE is the largest student housing provider in the UK and has mandated Investec and Numis to host a series of meetings to assess the likely appetite for a launch amongst retail stockbrokers and wealth managers.

UNITE was founded in 1991 by Nicholas Porter, and first listed in 2000. The Unite Group is a FTSE 250 company and in 2011 generated net income of £3.9m on revenue of £94.9m.

They could be the fifth property company to seek a new source of finance from the retail bond market in as many months, taking advantage of a new source of finance for property companies. 

Birmingham-based St Modwen Properties closed a 6.25%, 2019 debut retail bond on November 1st raising £80m, which was towards the higher end of its target range of £50-£100m. Chief executive Bill Oliver said: ‘We believe the positive response from investors demonstrates the strengths of St Modwen and its consistent income generation.“We are delighted to have successfully accessed a new source of finance and diversified our debt financing profile”.

St Modwen followed Primary Health Properties, CLS and Workspace Group in raising debt from retail investors looking for good yields.

Unite was founded in 1991 by Nicholas Porter, and first listed in 2000. The Unite Group is a FTSE 250 company and in 2011 generated net income of £3.9m on revenue of £94.9m.

Investec said financials and real estate companies have been “the main focus in the retail market this year with a total of 45% of total retail bond volume in 2012 coming from those sectors”.

Much as this has been good news for the property sector, it has equally provided a boon to Investec which is performing strongly in its own right.

Investec is the pre-eminent lead manager by revenue raised and number of deals for the year and has embraced the property sector, advising Workspace Group and St Modwen.

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