30th Mar 2016 09:29
LONDON (Alliance News) - K&C REIT PLC, the AIM-listed buyer of residential property in Central London, on Wednesday said it is "working closely" with funding sources, including providers of equity and debt, as the company reiterated that it will need to raise more capital to make acquisitions.
K&C, which listed on London's AIM in July 2015 and raised GBP2.7 million net of costs at 10 pence per share, said work is continuing on the potential acquisition of a project on which the company has exclusivity.
In addition, K&C is reviewing "a number of other" potential acquisitions, Chairman Michael Davies said in a statement.
K&C has traded "in line with management's expectations," since the end of December, marking the halfway point of its financial year, Davies said.
The special purpose vehicle acquired as the group went public is planning further refurbishment of its freehold property comprising of 10 leased apartments, K&C said.
Silcott Properties Ltd, the special purpose vehicle, has achieved "strong rental growth" when re-letting its units, Davies said, with the next refurbishments planned for the spring season in the UK.
Kensington & Chelsea REIT Ltd, the other of K&C's two subsidiary companies, sold a two-bedroom house at 10 Glebelands, Thatcham, Berkshire for GBP240,000 in November, followed by the sale of another two-bedroom house, with a garage, at 24 Martingale Chase, Newbury, Berkshire for GBP250,000 in January. Its third property, a shop and residential flat at 49 and 50 Cheap Street, Newbury, is on the market, K&C said on Wednesday.
Falling outside of the Central London area of interest, those three properties were not expected to form a "material" portion of the group's investments, according to a document published when K&C went public. The company needed a minimum of three properties to qualify as a real estate investment trust, a status which comes with tax benefits.
Reporting its first set of interim accounts since listing, having reported annual figures in December, K&C said it made a GBP938,629 loss before and after tax in the six months ended December 31. That measured up against a GBP376,763 loss before and after tax in the corresponding half the prior year.
Shares in K&C were untraded on Wednesday morning, having last traded at 6.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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