IC-G Longbow Senior Secured UK Property Development Limited listed on the Main Market
Wednesday 6th February 2013
London Stock Exchange is pleased to welcome ICG-Longbow Senior Secured UK Property Debt Investments Limited (the “Company”) to the main market under the ticker LBOW.
The Company’s shares were priced at £1 each, valuing the company’s market capitalisation at £104.6 million on admission.
The investment objective of the Company is to construct a portfolio of good quality, defensive, senior debt investments secured by first ranking fixed charges predominantly against UK commercial property investments, providing target dividends of circa 6% pa, paid quarterly, with an underlying target portfolio IRR of 8% pa.
Longbow Real Estate Capital LLP, a 51% owned subsidiary of Intermediate Capital Group plc, will act as Investment Manager for the Company.
To mark the occasion Marcus Stuttard, Head of UK Primary Markets at London Stock Exchange Group welcomed Stuart Beevor, Non-Executive Director of the Company, to open trading in London this morning.
Stuart Beevor, Non-Executive Director of the Company, said:
“Raising over £105m in what is currently a very difficult fund raising environment is a great achievement. The success is testament to the product. A 6% dividend yield on a senior loan product is very attractive and there has been significant demand from investors looking to diversify their portfolios. We currently see a looming £44bn shortfall in the supply of senior debt to the UK commercial property sector and we are delighted to offer investors an opportunity to originate new loans, underpinned by attractive credit fundamentals and with predictable returns.”
Investec acted as Sponsor, broker and bookrunner to the Company.