2nd May 2007 07:01
Local Shopping REIT (The) PLC02 May 2007 2 May 2007 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN The Local Shopping REIT plc Admission to trading on the London Stock Exchange Key points: • The Local Shopping REIT plc ("LSR"/"the Company"), a UK resident property investment company, announces that its Ordinary Shares have been admitted to the Official List of the UK Listing Authority and commenced trading on the London Stock Exchange. • The Company successfully completed an oversubscribed placing and offer for subscription, raising £160 million • The demand for the placing demonstrates both a strong appetite from investors for exposure to investing in local shopping assets in the United Kingdom offering the potential for income and capital growth and strong support for the Company's highly experienced management • The Company is self-managed. The Board of the Company comprises joint Chief Executives Mike Riley and Nick Gregory with Victoria Whitehouse as Finance Director. Grahame Whateley is non-executive Chairman and Andrew Cunningham (of Grainger Plc) and Nick Vetch (of The Big Yellow Group Plc) are non-executive directors • The Company aims to pay its shareholders dividends which it intends will provide an initial target annualised gross dividend yield of 4.75 per cent. on the 174 pence issue price • The Company expects this target dividend yield to grow by the UK Index of Consumer Prices from September 2008 • As at the date of the prospectus, the Company had built up a portfolio valued at £207.7 million of property spread across 484 assets, with 1,409 tenants producing an overall net rental income of £13.8 million per annum. The Company plans to invest a further £143 million into additional property by 30 September 2008 • The Company's shares will trade under the name "LSR" • JPMorgan Cazenove Limited has been appointed Financial Advisor and Broker to the Company. Grahame Whateley, Chairman of The Local Shopping REIT plc, said: "We are delighted to have successfully completed the Offer, enabling us towelcome a wide range of institutional investors to the Company. We believe thatwe are providing a unique opportunity for investors to gain access to a strongand diverse portfolio of local shopping assets, which will benefit greatly fromthe expertise of our highly experienced management team." Mike Riley, Joint Chief Executive, The Local Shopping REIT plc, said: "We are very excited to be embarking on the next phase of The Local ShoppingREIT's evolution. Our accretive business model and prospects for growth areclearly appealing to institutional and retail investors alike." Nick Gregory, Joint Chief Executive, The Local Shopping REIT plc, said: "With the capital raising process successfully completed, we will now continueour focus on acquiring good quality assets, creating additional opportunitiesthrough our established network of agents and unlocking additional value throughour asset management skills." For further information please contact: The Local Shopping REIT plc +44 20 7187 4444Mike RileyNick Gregory JPMorgan Cazenove +44 20 7588 2828Robert FowldsEdward Gibson-Watt Financial Dynamics +44 20 7831 3113Stephanie HighettDido Laurimore Important information The target gross dividend yield of the Company is a target only and is based onassumptions and projections, including with respect to the Company's propertyportfolio, capital structure, costs and expenses, and real estate market andgeneral economic conditions. These assumptions and projections are based on theBoard's judgements, estimates and beliefs as well as current market conditions,and are therefore subject to change. There can be no guarantee that the Companywill achieve its targets annualised dividend yield. The price and value of securities may go down as well as up. Past performance isnot necessarily a guide to future performance and failure of any assumptions andprojections with respect to the Company to be accurate or correct may adverselyimpact the value of the Company's securities. Persons needing advice shouldcontact a professional adviser. All statements in this announcement that are not historical fact are forwardlooking statements, including, without limitation, statements regarding the IPO,the expected proceeds from the IPO, the intention to list on the London StockExchange, the target gross dividend yield of the Company, the quality,composition, size, diversification and performance of the portfolio, theCompany's ability to generate above average returns and its growth prospects andstatements containing the words "believes", "estimates", "anticipates", "expects", "intends", "assumes", "may", "will", or "should" or in each case, theirnegative or other variations or similar expressions. Forward looking statementsinvolve known and unknown risk, uncertainties and other factors which may causeactual results to differ materially from any future results, performance orachievements expressed or implied by such forward looking statements. Subjectto any regulatory obligation, the Company expressly disclaims any obligation toupdate or revised forward-looking statements to reflect any change inexpectations, new information, subsequent events or otherwise. This communication is made by JPMorgan Cazenove Limited. JPMorgan CazenoveLimited, which is authorised and regulated by the Financial Services Authority,is acting for the Company only and will not be responsible to any other personfor providing the protections afforded to its clients or for advising suchperson on the matters referred to in this announcement. This document is an advertisement and does not constitute or form part of, andshould not be construed as, an offer to sell or issue, or a solicitation of anyoffer to buy or subscribe for Shares, nor should it or any part of it form thebasis of, or be relied on in connection with, any contract or commitmentwhatsoever. This document is not a prospectus. This document does not constitute, and may not be used for the purposes of, anoffer or an invitation to subscribe for Shares by any person in any jurisdictionin which (i) such offer or invitation is not authorised; or (ii) in which theperson making such offer or invitation is not qualified to do so; or (iii) toany person to whom it is unlawful to make such offer or invitation. Background information The Local Shopping REIT plc is a limited liability, UK resident, self-managed,closed ended investment company which, shortly following Admission, will electto become a Real Estate Investment Trust. The Company's capital structure willconsist solely of Ordinary Shares and the Company will have an indefinite life.The Company's investment objective is to provide shareholders with an attractivelevel of income with the potential for income and capital growth. Its investmentpolicy is to focus on investments in 'local' retail assets in the UnitedKingdom. Having developed the business concept with Grahame Whateley, Mike Riley and NickGregory started the Company's activities in January 2005 and the Group beganacquiring properties in April 2005. Since that time, Mike Riley and Nick Gregoryhave been responsible for identifying and acquiring investment propertiesfitting the Company's business model, as well as negotiating investment financeand effective asset management. Prior to Admission, the Company was owned 75% byCastlemore Holdings Limited (which holds its interests for the benefit ofGrahame Whateley's family) and 12.5% each by Mike Riley and Nick Gregory. The Board Grahame Whateley, non-executive Chairman, has been in the property industry forapproximately 45 years, after qualifying as a surveyor. He founded CastlemoreSecurities Limited (now a subsidiary of Castlemore Holdings) 36 years ago.Castlemore is currently involved in developing a portfolio of office, retail andlarge mixed use schemes worth over £1 billion around the country, totalling 10million square feet of new space. Nicholas Gregory, Joint Chief Executive. Along with Mike Riley, Nick was adirector at Castlemore Securities Limited between October 2002 and January 2005,when he became a director of the Company. Previously, Nick was at UBS GlobalAsset Management (UK) Limited from April 1996 to September 2002. At UBS, he wasappointed fund manager responsible for the management of a portfolio with avalue of £175m for Philips & Drew Second Property Partnership (later renamedTriton Property Fund). His role included stock selection, purchase diligence andsales, and he was later made responsible for all purchase and salestransactions. He became a director in July 2000 and a member of the PropertyInvestment Committee in May 2001 with responsibility for setting fund strategyand transaction approval for a fund with £568m of property assets (as at June2002). Prior to joining UBS, Nick was a trainee surveyor at Chesterton from 1993to 1996. Michael Riley, Joint Chief Executive. Mike has been working in the propertyindustry since 1986. Along with Nick Gregory, he was a director of CastlemoreSecurities Limited between October 2002 and January 2005, when he became adirector of the Company. Prior to joining Castlemore, Mike was at QuintainEstates and Development Plc from July 2001 until July 2002, holding the role ofChief Executive from March 2002. Previously, Mike worked at HVB Real EstateCapital for four years where he became joint managing director in October 1999and was responsible for the bank's marketing team. He also sat on its Londoncredit committee. Prior to that he was at Chesterton International from 1989 to1997. Mike trained as a chartered surveyor with Hillier Parker between 1986 and1989. Victoria Whitehouse, Finance Director. Victoria joined the Company as FinanceDirector in January 2007 from ProLogis Developments Limited where, as GroupFinancial Controller, she was responsible for directing the accounts team.Victoria was with KPMG, between 1997 and 2005, becoming senior audit managerresponsible for a variety of clients with turnovers up to £350m per annum,including publicly listed companies and a property group. Victoria trained withFelton & Co in Birmingham and qualified as a Chartered Accountant in 1997. Andrew Cunningham, Non-Executive Director, qualified as an accountant withDeloitte Haskins & Sells, becoming a partner in 1989 with responsibility for abroad range of audit clients. He joined Grainger PLC as Finance Director in1996, becoming Deputy Chief Executive in 2002. Nicholas Vetch, Non-Executive Director, was a co-founder of Big Yellow Group PLCin September 1998. Prior to that he was joint Chief Executive of Edge Propertiesplc, which he co-founded in 1989 and which was subsequently listed on theOfficial List of the London Stock Exchange in 1996 before being taken over byGrantchester Properties plc in 1998. Mr Vetch is also a non-executive directorof Blue Self Storage S.L - a self storage operation in Spain. The Company's management has also established a network of national and localadvisers, including active relationships with 4 specialist managing agents and18 investment acquisition agents around the UK, who are kept in close touch withthe Company's objectives and progress. This strategy has greatly assisted inidentifying and converting investment opportunities and maximising assetmanagement benefits and is expected to continue to provide the Group with accessto potential acquisitions and facilitate the execution of transactions andmanagement. In all, over 50 agents are actively identifying investmentopportunities and providing asset management and professional services to theportfolio. The management team engages and monitors agents' performance againstestablished rigorous standards. Supported by its professional advisers, LSR hasalready established a reputation for swift and efficient deal execution, whichhas led to repeat business with vendors and their agents on an off-market basis,with consequent benefits for pricing and deal costs. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LSR.L