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View the article online at http://citywire.co.uk/wealth-manager/article/a754128

Brandeaux confirms £1bn IPO of student property portfolio

by Robert St George on Jun 02, 2014 at 10:23

Brandeaux confirms £1bn IPO of student property portfolio

The Brandeaux Student Accommodation fund has confirmed that it will seek to repay investors through a flotation of its portfolio.

The assets, valued at £1.1 billion on 30 April, will be acquired by Liberty Living upon its stock-market listing; Liberty Living is a brand of Brandeaux.

Brandeaux stated the initial public offering would ‘create liquidity for its shareholders who want to redeem their investment and provide a structure to facilitate future redemptions’.

The group suspended its entire range of open-ended funds in July 2013 as the illiquidity of the portfolios meant Brandeaux struggled to meet redemptions.

Liberty Living is targeting a yield of around 5%, noting that for the year ended 31 August 2013 Brandeaux generated £81.5 million of rental and other income. The portfolio had a net debt level of £274.9 million at 30 April 2014.

‘Liberty Living offers investors access to an established and proven income-oriented student accommodation business,’ commented Roger Boyland, executive chairman of Liberty Living.

‘It operates in a market which benefits from attractive fundamentals, including an ongoing supply and demand imbalance, and limited correlation with economic cycles.’

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