Issue of Ordinary Shares

RNS Number : 8553C

Residential Secure Income PLC

25 January 2018

 

25 January 2018

RESIDENTIAL SECURE INCOME PLC

(the "Company")

Issue of Ordinary Shares under the Fund Management Agreement and Total Voting Rights

The Company announces that, in accordance with the terms of the Fund Management Agreement with ReSI Capital Management Limited (the "Fund Manager") pursuant to which 25 per cent. of the fund management fee is payable in new ordinary shares of £0.01 each in the capital of the Company ("Ordinary Shares"), it has today issued, in aggregate, 111,090 Ordinary Shares (the "Fund Management Ordinary Shares") to the Fund Manager, subject only to Admission (defined below).

The issue price per Fund Management Ordinary Share is £0.98 (being the prevailing Net Asset Value per share).

An application has been made for the Fund Management Ordinary Shares to be admitted to the premium segment of the Official List and to trading on the main market of the London Stock Exchange. It is expected that dealings in the Fund Management Ordinary Shares will commence at 8.00 a.m. on 26 January 2018 ("Admission").

The Identification code is GB00BYSX1508 and the LEI is 213800D24WA531LAR763.

The Fund Management Ordinary Shares issued and allotted are subject to a minimum lock-in period of 12 months from 1 January 2018, being when the Fund Management Ordinary Shares became due and deliverable.

Total Voting Rights

Immediately following Admission, the Company's issued share capital will consist of 180,324,377 Ordinary Shares with voting rights. This figure may be used by Shareholders 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, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

ReSI Capital Management Limited Jonathan Slater, Chief Executive Ben Fry, Investment Manager Alex Pilato, Director	[phone]
Jefferies International Limited Stuart Klein Gary Gould	[phone]
FTI Consulting                                                                                         Richard Sunderland                               Claire Turvey Methuselah Tanyanyiwa	[phone] Email: [e-mail]

NOTES:

Residential Secure Income plc (LSE: RESI) is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the Main Market of the London Stock Exchange in July 2017.

ReSI has been established to invest in portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities, comprising Shared Ownership Homes and Rental Homes (being Market Rental Homes, Functional Homes and Sub-Market Rental Homes) throughout the UK.

ReSI is managed by ReSI Capital Management Limited, a wholly owned subsidiary of TradeRisks Limited which has a 16 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.

ReSI seeks to deliver secure, long-dated, inflation-linked income returns through investment in UK social housing. It aims to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to recycle capital back into socially and economically beneficial new housing, making a meaningful contribution to the UK housing shortage.

Homes acquired by ReSI will predominantly be on a freehold or long leasehold basis (typically 99 years or more to maturity) and benefit from long term (typically 20 years plus) inflation-adjusted cash flows. Acquisitions by ReSI will be limited to Homes with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term investment grade equivalent debt.

ReSI is targeting, on a fully invested and geared basis, a dividend yield of 5% per annum based on the issue price of 100 pence per Ordinary Share, which ReSI expects to increase broadly in line with inflation, and a total return in excess of 8% per annum1.

1. This is a target only and not a profit forecast and there can be no assurance that it will be met.

Further information on ReSI is available at www.resi-reit.com 

 

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