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Select Property Group – ORB listed retail bond – 6% due 2023

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Closed 5th October

 

Multi-award winning residential property developer, owner and manager Select Property Group has announced the offer of sterling-denominated retail bonds offering 6% p.a. due 2023.

 

Issued by Select Property Group Finance PLC, the bonds are expected to be listed on the UK Listing Authority’s official list and admitted to trading on the London Stock Exchange’s regulated market and through its electronic Order Book for Retail Bonds (ORB).

The offer period is now open and is expected to close at 12.00noon on 5th October 2017; however, the company retains the right to close the offer early in conjunction with the lead manager; there is expected to be strong demand as investors searching for income have been starved of retail bond issuance this year.

The bonds have a minimum investment of £2,000 and are available in multiples of £100 thereafter; they will bear interest at a fixed rate of 6% per annum, payable in two equal installments a year from the date of issue until they mature on 13th October 2023.

ORB provides secondary market liquidity allowing investors to sell the bonds within market hours and in normal market conditions through their stockbroker.

Select Property Group is a provider of managed residential properties across the student, private rented and serviced apartment sectors through its Vita Student, Affinity Living and CitySuitesbrands; it concentrates on locations which it believes possess a significant demand for its branded products, which are supported by strong underlying market fundamentals.

Founded in 2004, with an initial focus on property sales and marketing, the company has an experienced and long-standing management team.

Mark Stott, Chief Executive Officer of Select Property Group, said: ‘Over the past decade, we have built three brands that, while targeting different sections of the property market, are united by an approach that puts the needs and experiences of our customers at the very forefront of the offering. Our customers benefit from high-quality facilities, locations and customer service. We believe that our ability to develop a sense of community is crucial to driving consistently high occupancy rates and generating sustainable, growing income streams.

‘The success of our strategy is evident in our upcoming developments and our future pipeline across the student, PRS and serviced apartment sectors. As we continue to grow the business and build on the success we have achieved to date, we are seeking opportunities to diversify our sources of funding. The launch of our debut retail bond will support the continued development of our business and it marks an exciting step forward for Select Property Group and our stable of brands.’

Cenkos Securities PLC is acting as Lead Manager on the issue and its authorised distributors are AJ Bell, Saga Share DirectSelftrade and Shareview Dealing.

Launched in 2004, Select Property Group has a long history of building, selling and operating innovative residential developments which it has sold to investors around the world.

Select Property Group currently operates three distinct brands in the UK:

Launched in 2013, Vita Student has revolutionised student accommodation and now has fourteen buildings in nine prestigious university towns, housing a community of 3,700 students; with high levels of customer service and satisfaction, Vita Student has high levels of occupancy allowing it to deliver sustainable and growing rental income.

The next phase of development will see Vita Student accommodate more than 6,500 students in fourteen cities by 2020.

Affinity Living is Select’s private residential brand catering for the increasing number of professional renters as the so called ‘subscription generation’ opt to rent a property rather than attempt to buy a property and delivers an immersive social environment.

CitySuites is a new concept in business travel accommodation combining the comforts of home with the amenities and luxury touches of a hotel.

Select Property Group aims to constantly innovate, building upon its success in the student accommodation sector and has ambitious plans to develop in the private rental and business travel space.

 

 

SPG terms4

 

 

 

Documents relating to the offer

 

See the RNS announcement here

Learn about ‘when issued dealing’ on ORB here

 

Visit Selftrade to subscribe to this offer

 

 

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To learn more about retail bonds visit Retail Bond Expert

 

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IPO/Issue 2

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Information booklet

 

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Prospectus

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Vita Student

 

 

CitySuites

 

 

 

 

 

 

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