St Paul’s Property Trust Plc, a UK-focused property investment company has postponed plans to list on the Nairobi Securities Exchange (NSE) few days after appointing a kenyan, Mr Vincent Rague to its board, as a non-executive director.(Rague is a co-founder and director of Catalyst Principal Partners, a Nairobi-based private equity manager and Chairman of FSD Africa.)
The firm cited unfavorable market conditions which has also hurt some companies that had planned to raise funds via the NSE. St Paul’s Property has also put off its plan to raise Ksh 5 Billion ahead of the listing.The firm had earlier said that it intended to raise Ksh 4 billion via listing on the NSE but have a green shoe option of Sh1 Billion hence was to tap about Ksh 5 Billion.This means the firm will take up to Sh5 billion if there is an oversubscription.
The firm’s strategy is to buy high-grade offices that can house government departments, which normally tend to sign long term leases and do not default on payments, ensuring stable and reliable rental income.
Funds raised via the NSE are to used to buy UK property and then borrow up to 50 per cent of their value to raise more capital to buy further property.
Burbidge Capital are the nominated advisers while Coulson Harney will handle the legal work. Deloitte are the reporting accountants and Levanter Africa are in charge of communications.
