The UK’s first mainstream residential Real Estate Investment Trust (REIT) has exceeded its initial target of £2.1 million on the SyndicateRoom crowdfunding platform after 12 days from launch.
Mill Residential REIT, which offers exposure to the mainstream buy-to-let market via shares in a company, is available to both private and professional investors and is the first time crowdfunding has been used alongside IFA networks, traditional private placings and an institutional IPO roadshow.
SyndicateRoom, which is used by both angel investors and sophisticated private investors, has raised its £2.1m from 49 investors, and disregarding the £1.5m investment by the founders, has averaged over £15,000 per investor despite its minimum investment requirement of just £1,000.
Having secured its initial funding target, the REIT has agreed to make a further £500,000 of equity available to SyndicateRoom members as ‘overfunding’.
In addition and separate to SyndicateRoom, further investment is to come from IFAs, private placings and institutional investors looking to buy shares ahead of the company’s stock market launch, expected later this month, after which the shares will be available to trade.
The company already holds a portfolio of residential properties across the UK, and as a REIT it will pay no tax on either its income or capital gains.
David Toplas, chief executive of Mill Group Residential, said: “We have been very pleased with the level of interest in our buy-to let REIT – the first time that people have been offered an easy way to invest in this popular asset class via a share that will shortly be listed on a UK stock exchange.
“At last people can invest in a buy-to-let investment that is suitable to put into your SIPP or ISA – but people will have to be quick to get into the IPO as it will be closing soon as we want to complete the listing process by Christmas.”
Gonçalo de Vasconcelos, founder and CEO, SyndicateRoom, said: “This is the first time a traditional IPO has been combined with crowdfunding, demonstrating Mill Group’s progressive approach and just how sophisticated crowdfunding has become. We are delighted to be trailblazing by bringing this new class of property investment to market.
“Mill Group has been successfully investing in and developing the UK’s property market for more than 20 years, and its exceptional pedigree underpins the launch of this pioneering REIT.”