Top 20 business law firm DWF has advised Custodian REIT plc, a £130 million closed-ended investment company, on its flotation on the Main Market of the London Stock Exchange. Custodian REIT plc, a newly incorporated company formed by Mattioli Woods plc, is expected to become a real estate investment trust. The flotation is believed to be the first UK REIT IPO to combine a fundraising with the acquisition of a seed portfolio of properties.
The transaction involved the acquisition of an initial portfolio of 48 properties from syndicates managed by Custodian Capital Ltd, part of the Mattioli Woods group, as well as a placing and offer for subscription to raise £55 million. The funds raised are to be invested in a diverse portfolio of UK commercial properties over the next six to twelve months. Custodian REIT plc has been constituted with an independent board, benefitting from extensive property expertise. Custodian Capital Ltd is its discretionary investment manager.
Ian Mattioli, Chief Executive of Mattioli Woods, added: "I'd like to thank Guy and his team; they have done a fantastic job and invested a huge amount of time and effort on our behalf from the beginning. Most importantly, the response from investors to the IPO has reaffirmed our belief that Custodian REIT plc is a very attractive investment proposition. We are focused on delivering an attractive level of income, together with the potential for capital growth from a balanced portfolio of real estate assets. The new funds raised will allow Custodian REIT plc to take advantage of a pipeline of opportunities to grow its diverse portfolio of existing property."