Energiser Investments : Investment of £1.7m in KCR Residential REIT Plc

19March 2018

Energiser Investments plc 

('Energiser' or the 'Company')

Investment of £1.7m in KCR Residential REIT Plc

Energiser is pleased to confirm it has acquired 2,435,710 new ordinary shares at £0.70 a share for a total of £1,704,997 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 £1,210,897 and the novation of the rights to its loan investment of £494,100 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 £9.45 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 £1.3 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: