13th November 2019
Langham Hall is delighted to be working with Fundamentum Property Advisers on their successful listing of Fundamentum Social Housing REIT PLC (the “Fund”).
The Fund has taken the form of a private REIT listed on the International Stock Exchange (“TISE”), with a target fundraise of £350 million over the next 18 months. The fund will invest in Social Housing opportunities throughout the UK.
Langham Hall has been appointed to provide fund administration, company secretarial, AIFM and depositary services to the Fund through its London and Jersey offices, increasing its already strong client base of listed REITs.
Private REITs gain in popularity
We have seen a marked increase in interest in private REITs of late, particularly in light of recent changes made to the taxation of capital gains made on UK property for non-resident investors. Furthermore, listing on TISE is seen as favourable by some managers, due to its international recognition, competitive pricing and exemption of the “free float” requirement.
To qualify as a REIT, a fund must, inter alia, distribute 90% of its income, invest in at least 3 properties, and have no more than 40% of its value invested in any single property.
Social Housing as an asset class
Private investment in social housing has had a large part to play in addressing the wide scale undersupply of affordable homes in the UK. REITs investing in social and affordable housing provide investors with another source of diversification, and with long-term, local authority backed rents, they can be classified on the lower end of the risk spectrum. We look forward to working with Fundamentum over the coming years as they continue to grow.
Langham Hall can provide accounting, administration, company secretarial, depositary and host-AIFM services to UK REITs. For more information on how we can help, please do get in touch.