DUKEMOUNT Capital, a property services company aimed at institutional investors, is listing on the London Stock Exchange today.
The listing will raise £800,000 for running costs and give the company an initial market cap of around £1.5m.
The property firm plans plug the gap between supply and demand in the long-dated income market which caters to institutions such as pension providers. A recent Schroders report calculated that the potential demand for long-dated income could be £1.6 trillion, with supply trailing this.
Dukemount intends to develop and manage a portfolio of properties that are sold to some of the world’s largest institutions on a sale and leaseback basis with long-term operational tenants such as housing associations. The rent will be CPI linked where possible to ensure the Institutions receive sustainable yields.
It expects to have £100m of real estate assets within the first year of operations and up to £300m a year after that.
Chairman Geoffrey G Dart said: “The board have identified a unique opportunity and have developed a strong business model which we expect will help close the growing demand and supply gap for long dated income by providing institutions such as pension providers, higher income yields.
It has chosen to list on the main market to provide institutions with the transparency and corporate governance they require.