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Brandeaux confirms £1bn IPO of student property portfolio

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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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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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