Multi-award winning residential property developer, owner
and manager Select Property Group has today announced the offer of
sterling-denominated retail bonds offering 6% p.a. due 2023.
Issued
by Select Property Group Finance PLC, the bonds are expected to be listed on
the UK Listing Authority’s official list and admitted to trading on the London
Stock Exchange’s regulated market and through its electronic Order Book for
Retail Bonds (ORB).
The
offer period is now open and is expected to close at 12.00noon on 5th October
2017; however, the company retains the right to close the offer early in conjunction
with the lead manager; there is expected to be strong demand as investors searching
for income have been starved of retail bond issuance this year.
The
bonds have a minimum investment of £2,000 and are available in multiples of
£100 thereafter; they will bear interest at a fixed rate of 6% per annum,
payable in two equal installments a year from the date of issue until they
mature on 13th October 2023.
ORB
provides secondary market liquidity allowing investors to sell the bonds within
market hours and in normal market conditions through their stockbroker.
Select
Property Group is a provider of managed residential properties across the
student, private rented and serviced apartment sectors through its Vita
Student, Affinity Living and CitySuites brands; it concentrates on locations
which it believes possess a significant demand for its branded products, which
are supported by strong underlying market fundamentals.
Founded
in 2004, with an initial focus on property sales and marketing, the company has
an experienced and long-standing management team.
Mark
Stott, Chief Executive Officer of Select Property Group, said:
‘Over
the past decade, we have built three brands that, while targeting different
sections of the property market, are united by an approach that puts the needs
and experiences of our customers at the very forefront of the offering. Our
customers benefit from high-quality facilities, locations and customer service.
We believe that our ability to develop a sense of community is crucial to
driving consistently high occupancy rates and generating sustainable, growing
income streams.
‘The
success of our strategy is evident in our upcoming developments and our future
pipeline across the student, PRS and serviced apartment sectors. As we continue
to grow the business and build on the success we have achieved to date, we are
seeking opportunities to diversify our sources of funding. The launch of our
debut retail bond will support the continued development of our business and it
marks an exciting step forward for Select Property Group and our stable of
brands.’
Cenkos
Securities PLC is acting as Lead Manager on the issue and its authorised
distributors are AJ Bell, Saga Share Direct, Selftrade and Shareview Dealing.
Select Property Group has a long history
of building, selling and operating innovative residential developments which it
has sold to investors around the world.
It currently operates three distinct
brands in the UK:
Launched in 2013, Vita
Student has revolutionised student accommodation and now has fourteen
buildings in nine prestigious university towns, housing a community of 3,700
students; with high levels of customer service and satisfaction, Vita Student has
high levels of occupancy allowing it to deliver sustainable and growing rental
income.
The next phase of development will see Vita Student
accommodate more than 6,500 students in fourteen cities by 2020.
Affinity Living
is Select’s private residential brand catering for the increasing number of
professional renters as the so called ‘subscription generation’ opt to rent a
property rather than attempt to buy a property and delivers an immersive social
environment.
CitySuites is a
new concept in business travel accommodation combining the comforts of home
with the amenities and luxury touches of a hotel.
Select Property Group aims to constantly innovate, building
upon its success in the student accommodation sector and has ambitious plans to
develop in the private rental and business travel space.
For more information regarding this issue visit Retail Bond Expert's Current Issues page