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Mill Residential completes UK’s first ‘combined IPO’

The latest entrant to the AIM market has become the first company in the UK to float after securing investment from both crowdfunding and institutional investors.

The Mill Residential REIT – which has floated on AIM, the LSE’s international market for smaller companies – is Britain’s first mainstream residential REIT. The company, which invests in buy-to-let property, has a market capitalisation of GBP3.5million.
 
The SyndicateRoom platform, which is used by both angel investors and sophisticated private investors and has a minimum investment requirement of just GBP1,000, smashed its fundraising target of GBP2.1million in just three weeks.
 
The Mill Residential REIT holds a portfolio of residential properties across the UK, and as a REIT it will pay no tax on its core rental income or capital gains. It has been designed to offer investors a highly liquid and tax-efficient way to gain exposure to the buy-to-let market, without the cost or hassle of owning property directly.
 
Shares began trading at 105p each, and shareholders will be paid dividends twice a year. The company is targeting a net dividend yield of 3% per annum and a total return of 10% per annum. Those who hold their shares in an ISA or Self-invested Personal Pension (SIPP) will receive their dividends free of tax.
 
The combined IPO was the brainchild of Mill Group Residential, a real estate investment and development company, and Gonçalo de Vasconcelos, SyndicateRoom’s CEO.
 
Gonçalo de Vasconcelos, founder and CEO, SyndicateRoom, says: “Mill Residential REIT is the first crowdfunded company ever listed on a main UK stock exchange. Its successful IPO is testament to the innovation that the financial services industry is going through, with SyndicateRoom as the frontrunner of equity crowdfunding.”
 
“SyndicateRoom prides itself on being at the forefront of financial services innovation, and we’re delighted to have used the power of crowdfunding to bring this new class of property investment to market. Crowdfunding has matured into an accepted part of the UK’s financial landscape and we at SyndicateRoom will continue to connect sophisticated private investors with promising young companies like the Mill Residential REIT.”
 
Marcus Stuttard, Head of AIM, says: “Throughout its almost 20 year history, AIM has always supported innovation of all kinds which is why I’m delighted to welcome the Mill Residential REIT to the market today. This transaction demonstrates how AIM can provide structured support to crowdfunded ventures, and help provide a straightforward exit environment for early stage investors. AIM provides liquidity for investors as well as a foundation from which companies can raise further growth capital throughout their development.”

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