Investing.com UK - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UK Mortgages eyes home loan investment spree after raising $505 million

Published 07/07/2015, 08:53
Updated 07/07/2015, 08:55
© Reuters. A row of houses are seen in London

LONDON (Reuters) - UK Mortgages , an investment fund focused on Britain's residential mortgage market, said on Tuesday it had raised gross proceeds of 250 million pounds to build a portfolio of loans that offer stable income streams in volatile financial markets.

The fundraising was executed via a placing and open offer of ordinary shares at an issue price of 100 pence per share and attracted demand in excess of 325 million pounds ($505.28 million), the company said.

Headquartered in Guernsey, UK Mortgages is run by TwentyFour Asset Management and targets a net total return of 7-10 percent a year.

UK Mortgages Chairman Chris Waldron said the funds were raised in a "significantly oversubscribed fundraising," adding that "the demand for the product is testament to the asset class' potential returns."

"The income potential and historically low correlation to other asset classes has clearly appealed to investors," said TwentyFour Chief Executive Mark Holman.

UK Mortgages aims to pay a dividend of 3 pence per ordinary share for the financial year ending June 30 2016 with a first interim dividend to be paid in April 2016.

© Reuters. A row of houses are seen in London

Numis Securities Limited acted as UK Mortgages' broker and financial adviser and will continue working with the company.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.