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Established Property Company seeks AIM listing for Active Managed Fund
Corovest International UK today announces its intention to list property fund, CIREF Limited ("CIREF"), an active property investment and development fund on the AIM market of the London Stock Exchange. CIREF intends to raise up to £35 million through a placing of new ordinary shares with institutional investors at the time of the listing.
CIREF's principal focus is on finding opportunities in the UK and elsewhere in Europe which offer the prospect of capital appreciation. CIREF's aim is to generate total returns for shareholders through net asset value growth, primarily through capital enhancement of the Group's portfolio, and the payment of dividends. However CIREF's investment model also seeks to balance exposure by investing in some lower risk income generating assets and other listed property securities. Corovest Fund Managers will manage CIREF and, through an associate company, hold approximately 15% of the fund after listing. Corovest Fund Managers has a long and established track record of identifying and developing properties internationally and is an 80% owned subsidiary of South African financial services business, Coronation Investments and Trading Limited. CIREF proposes to raise up to £35 million (net of expenses) through a placing by Seymour Pierce. It is expected that Admission to AIM will become effective and dealings in the issued Ordinary Shares of the Company will commence in early May. The Directors intend that the net proceeds of the Placing will be used to partly reduce debt, to fund the development of the current portfolio and to make further acquisitions or investments in new properties. The UK Government recently announced the introduction of new property legislation, allowing property companies who meet certain criteria, to convert to Real Estate Investment Trust (REIT) status. Very simply, REIT companies will be able to take advantage of a corporation tax rate in return for distributing at least 90% of annual net profits to shareholders. REIT status might present an attractive opportunity for CIREF. Post-listing CIREF intends to consider whether converting to REIT status , regulations permitting, would be achievable and beneficial. Commenting on the fundraising and intended listing, Mike Watters, CIREF Director said: "CIREF already has a very strong portfolio of investments and development opportunities. The money that we raise and the visibility afforded by AIM will allow us to expand and apply our active management strategy to additional opportunities in the UK and throughout Europe. This is a very exciting time for the company and we are looking forward to joining AIM, the world's most successful market for fast growing companies."
About CIREF CIREF is a property investment and development company incorporated on 28 September 2005 under the laws of Jersey which immediately after incorporation acquired the assets of the Corovest International Real Estate Fund. It invests in commercial real estate primarily in the UK and Europe, with a focus on retail and commercial assets. The Company will have an experienced board of nine non-executive directors and is chaired by Gavin Tipper. Of the Directors, Mike Watters, Stephen Carlin, Gavin Tipper and Rob Smith are connected to the Investment Manager. The strategy of the Company comprises four distinct yet complementary elements: stable income projects, major development projects, value enhancing projects; and investments in property collective investment vehicles and property companies. CIREF's current portfolio consists of 12 key investments: including the 29-strong KwiKFit property portfolio, two large retail properties in Switzerland and the Hounds Hill Shopping Centre in Blackpool, UK. About the Placing and Listing The Company is proposing to raise up to £35 million (net of expenses) through an institutional placing by Seymour Pierce. A significant percentage of the Placing Shares are expected to be placed with institutions and other investors in South Africa procured by Standard Bank.
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