Energiser Invts PLC Investment of GBP1.7m in KCR Residential REIT Plc

 
TIDMENGI 
 
19 March 2018 
 
                          Energiser Investments plc 
 
                        ('Energiser' or the 'Company') 
 
                Investment of GBP1.7m in KCR Residential REIT Plc 
 
Energiser is pleased to confirm it has acquired 2,435,710 new ordinary shares 
at GBP0.70 a share for a total of GBP1,704,997 in KCR Residential REIT plc ('KCR'). 
 The investment, made by participation in a subscription alongside other 
investors, has been made at a 9% discount to net asset value per share of KCR 
as reported in its half-yearly report announced on 16 March 2018. This 
investment by Energiser represents a 24.7% shareholding in KCR. 
 
The subscription has been funded with cash of GBP1,210,897 and the novation of 
the rights to its loan investment of GBP494,100 owed to Energiser by Beta Circle 
Ltd. 
 
KCR is an AIM quoted Real Estate Investment Trust ('REIT') focused on 
investment in the UK residential Private Rented Sector ('PRS').  It has a 
portfolio of GBP9.45 million.  KCR invests in whole apartment blocks of studio, 
one and two-bedroom flats, in city centres, close to railway stations and 
shopping facilities.  It focuses on more affordable rental properties for 
private tenants.  KCR has a strong pipeline of accretive opportunities that it 
is seeking to execute. 
 
Savills reports that the PRS market is GBP1.3 trillion in size, 44% larger than 
the entire commercial property market, and only 2% of it professionally 
managed.  KCR is one of the first quoted investment companies to focus on 
investing in and professionally managing rented residential property in 
residential private rented sector. 
 
The Energiser board recognises that there is positive structural shift underway 
in residential PRS.  With KCR, it has established a strategic shareholding in a 
growth company with a strong management team in a very large, under-managed 
sector. 
 
Dominic White, Energiser's Chief Executive, is also Chief Executive of KCR. 
Therefore the investment in KCR constitutes a related party transaction for the 
purpose of AIM Rule 13. With the exception of Dominic White, the directors 
consider, having consulted with the Company's nominated adviser, Cairn 
Financial Advisers LLP, that the terms of the transaction are fair and 
reasonable insofar as its shareholders are concerned. 
 
Energiser's investment strategy focus is on the property sector, where it may 
invest directly, or through companies in property equity and loan transactions, 
and property operating businesses in quoted or unquoted companies to achieve 
capital growth. 
 
The Board continues to look for and invest in assets that achieve its capital 
growth objectives.  We look forward to updating you on the progress of KCR and 
other potential investment transactions in the coming months. 
 
This announcement contains inside information for the purposes of Article 7 of 
EU Regulation 596/2014. 
 
For further enquiries, please visit www.energiserinvestments.co.uk or contact: 
 
Energiser Investments Plc 
 
Dominic White, Chief Executive       01494 762450 
 
Nishith Malde, Director 
 
Cairn Financial Advisers LLP 
 
Jo Turner                            020 7213 0880 
 
Sandy Jamieson 
 
 
 
END 
 

(END) Dow Jones Newswires

March 19, 2018 03:00 ET (07:00 GMT)