19 March 2018
KCR Residential REIT plc ("KCR" or the "Company") announces that it has raised new equity for investment to grow its residential property portfolio through the issuance of 4,507,136 ordinary shares ("Shares") at £0.70.
Highlights
Placement
The placement consists of cash invested into the Company, the novation of the rights to a debt and the conversion of part of the Company's convertible loan note ("CLN") into equity.
The combination of investing the new capital into revenue-producing property assets and reducing the overall debt cost moves KCR positively forwards towards its goal of paying dividends.
The total new investment in Shares consists of the following subscriptions and conversions:
Energiser will own 24.71 per cent of KCR on the completion of these transactions.
Admission
Application will be made to the London Stock Exchange for the Shares to be admitted to trading on AIM. It is currently expected that Admission will become effective, and that dealings in the Shares will commence on AIM, at 8.00 a.m. on 23 March 2018 ("Admission").
Following Admission, the Company's issued share capital will consist of 9,857,207 Ordinary Shares with voting rights. KCR does not hold any Ordinary Shares in treasury.
Following Admission, the aforementioned figure of 9,857,207 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, KCR under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Dominic White, chief executive, commented "This is a very positive step forwards for KCR and puts us in a strong position to acquire the next assets. The investment also represents a vote of confidence in our strategy to build a substantial residential property portfolio that generates secure income flow for shareholders. The combination of (i) increasing revenues through acquisitions and rental growth, (ii) reducing debt costs and (iii) becoming more efficient as an operating platform moves us closer to being able to pay dividends. We intend to refinance the remaining debt at significantly lower rates and continue to grow revenues through accretive acquisitions from our strong pipeline of investment opportunities."
This announcement contains information which, prior to its disclosure, was inside information for the purpose of the Market Abuse Regulation.
Contacts:
| KCR Residential REIT plc | info@kcrreit.com |
| Dominic White, Chief executive | +44 20 3793 5236 |
| Arden Partners plc | +44 20 7614 5917 |
| Steve Douglas Benjamin Cryer |
Notes to Editors:
K&C's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets in London and other key residential areas in the UK.
| 1 | Details of the person discharging managerial responsibilities / person closely associated | |||||
| a) | Name | Timothy James and Serena James | ||||
| 2 | Reason for the notification | |||||
| a) | Position/status | Director and his spouse | ||||
| b) | Initial notification /Amendment | Initial notification | ||||
| 3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
| a) | Name | KCR Residential REIT plc | ||||
| b) | LEI | 213800NTHWVFLSB9CX32 | ||||
| 4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
| a) | Description of the financial instrument, type of instrument | Ordinary shares of 10p each | ||||
| Identification code | ISIN: GB00BYWK1Q82 | |||||
| b) | Nature of the transaction | Conversion of Loan Notes into Ordinary Shares in | ||||
| c) | Price(s) and volume(s) |
|
||||
| d) | Aggregated information - Aggregated volume - Price |
N/A (Single transaction) | ||||
| e) | Date of the transaction | 16 March 2018 | ||||
| f) | Place of the transaction | Outside a trading venue | ||||
| 1 | Details of the person discharging managerial responsibilities / person closely associated | |||||
| a) | Name | Michael Davies | ||||
| 2 | Reason for the notification | |||||
| a) | Position/status | Director | ||||
| b) | Initial notification /Amendment | Initial notification | ||||
| 3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
| a) | Name | KCR Residential REIT plc | ||||
| b) | LEI | 213800NTHWVFLSB9CX32 | ||||
| 4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
| a) | Description of the financial instrument, type of instrument | Ordinary shares of 10p each | ||||
| Identification code | ISIN: GB00BYWK1Q82 | |||||
| b) | Nature of the transaction | Allotment of Ordinary Shares for cash | ||||
| c) | Price(s) and volume(s) |
|
||||
| d) | Aggregated information - Aggregated volume - Price |
N/A (Single transaction) | ||||
| e) | Date of the transaction | 16 March 2018 | ||||
| f) | Place of the transaction | Outside a trading venue | ||||