Horizon Housing REIT PLC, the real estate investment company has announced its plans to float on the London Main Market next month.
The trust is planning to raise £125mln in an initial public offering with the offering of 125mln shares at 100p per share.
Horizon Housing will invest in affordable rent housing and specialist social housing, including Extra Care Housing, Supported Living, Sheltered Housing and Assisted Living.
The company will also issue 56.25mln shares to East Riding Pension Fund in consideration for its ownership of a portfolio of 551 properties, consisting of a diversified mixture of Affordable Market Rent Housing and Specialist Social Housing.
The initial portfolio was valued at £75.2mln at 31 December 2017 and will constitute approximately 61.2% of the opening Net Asset Value of the company.
The Company is targeting an initial dividend of 4p per share in the first financial year, rising to 5p per share for the company's second financial year and, thereafter, the Board will seek to increase the target dividend with reference to inflation.
Winterflood Securities Limited is acting as sponsor, financial adviser and bookrunner to the company.