Metric Property Plans GBP150 Million IPO On LSE Main Market
08.03.10, 10:53 Uhr |
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LONDON -(Dow Jones)- Metric Property Investments PLC Monday said it is hoping to raise GBP150 million in an initial public offering on London Stock Exchange's main market as it seeks to take advantage of the sharp downturn in property values.
On admission, Metric will be one of the U.K.'s first new real estate investment trusts since they were allowed in the U.K. in 2007, and will have some GBP300 million spending power including debt.
Metric has received strong interest for the listing, Chief Executive Andrew Jones told Dow Jones Newswires in an interview.
Jones, who previously ran the GBP5 billion retail portfolio at U.K.'s second largest real estate investment trust, British Land Co. PLC (BLND.LN), will run the company along with Valentine Beresford and Mark Stirling, who also had roles at British Land. The directors have committed to an initial investment of GBP6 million.
CEO Jones said he will benefit from re-pricing and refinancing pressures in the retail property market to create a portfolio of retail assets located across the U.K. and that he is seeing a lot more opportunities for acquisitions currently, than at the end of 2009.
He is planning to buy distressed and mismanaged out-of-town retail parks and shopping centers, if opportunities arise, and through asset management enhance the income. Jones said he will focus on letting any vacant space, improving the retailer line-up, as well as getting value-enhancing extensions to make his assets more attractive.
The CEO said "we are currently in negotiations with a number of vendors regarding potential investment opportunities and we will continue to source similar opportunities within our preferred sub-sectors of the U.K. retail property market."
He added that "refinancing pressures have turned reluctant vendors into motivated ones" as almost half of the outstanding GBP280 billion of U.K. real-estate debt is due to mature before the end of 2012, and almost one-third is likely to become delinquent.
He expects opportunities to come from private individuals and private companies, as well as larger property companies and banks.
The company appointed Oriel Securities and J.P. Morgan Cazenove as joint sponsors, financial advisers and book runners. Conditional dealings on the LSE are expected to commence on March 19 and unconditional dealings are expected to commence on March 24.
Metric has received strong interest for the listing, Chief Executive Andrew Jones told Dow Jones Newswires in an interview.
Jones, who previously ran the GBP5 billion retail portfolio at U.K.'s second largest real estate investment trust, British Land Co. PLC (BLND.LN), will run the company along with Valentine Beresford and Mark Stirling, who also had roles at British Land. The directors have committed to an initial investment of GBP6 million.
CEO Jones said he will benefit from re-pricing and refinancing pressures in the retail property market to create a portfolio of retail assets located across the U.K. and that he is seeing a lot more opportunities for acquisitions currently, than at the end of 2009.
He is planning to buy distressed and mismanaged out-of-town retail parks and shopping centers, if opportunities arise, and through asset management enhance the income. Jones said he will focus on letting any vacant space, improving the retailer line-up, as well as getting value-enhancing extensions to make his assets more attractive.
The CEO said "we are currently in negotiations with a number of vendors regarding potential investment opportunities and we will continue to source similar opportunities within our preferred sub-sectors of the U.K. retail property market."
He added that "refinancing pressures have turned reluctant vendors into motivated ones" as almost half of the outstanding GBP280 billion of U.K. real-estate debt is due to mature before the end of 2012, and almost one-third is likely to become delinquent.
He expects opportunities to come from private individuals and private companies, as well as larger property companies and banks.
The company appointed Oriel Securities and J.P. Morgan Cazenove as joint sponsors, financial advisers and book runners. Conditional dealings on the LSE are expected to commence on March 19 and unconditional dealings are expected to commence on March 24.
DJG/isj
