Cambridge-based SyndicateRoom Makes AIM History: Mill Residential REIT Lists on London Stock Exchange

SyndicateRoom Logo NewThe London Stock Exchange has today seen its first “combined IPO”, after a company successfully floated with investment from both crowdfunding and institutional investors. The Mill Residential REIT invests in buy-to-let property and has listed on AIM with a market capitalization of £3.5million.  According to Jenny Chapman of Cambridge News, “SyndicateRoom is the first company to harness investment both from private investors via crowdfunding and institutional buyers for its IPO.” Mill used Cambridge-based SyndicateRoom for the crowdfunding.

Gonçalo de VasconcelosThe combined IPO was the brainchild of Mill Group Residential, a real estate investment and development company, and Gonçalo de Vasconcelos, SyndicateRoom’s CEO: “This is the first crowdfunded company ever listed on a main UK stock exchange. Its successful IPO is testament to the innovation that the financial services industry is going through, with SyndicateRoom as the frontrunner of equity crowdfunding.”

The SyndicateRoom platform, which is used by both angel investors and sophisticated private investors and has a minimum investment requirement of just £1,000, smashed its fundraising target of £2.1million in just 3 weeks.

 “Throughout its almost 20 year history, AIM has always supported innovation of all kinds which is why I’m delighted AIM Alternative Investments Marketto welcome the Mill Residential REIT to the market today,” shared Marcus Stuttard, Head of AIM. “This transaction demonstrates how AIM can provide structured support to crowdfunded ventures, and help provide a straightforward exit for early stage investors.”

Mill holds a portfolio of residential properties across the UK, and as a REIT it will pay no tax on its core rental income or capital gains. It has been designed to offer investors a highly liquid and tax-efficient way to gain exposure to the buy-to-let market, without the cost or hassle of owning property directly. Shares began trading at 105p each, and shareholders will be paid dividends twice a year. The company is targeting a net dividend yield of 3% per annum and a total return of 10% per annum. Those who hold their shares in an ISA or Self-invested Personal Pension (SIPP) will receive their dividends free of tax.

 


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