Responsible Housing plans to raise £250m in IPO

Responsible Housing has announced plans to raise up to £250m in an initial public offering to help meet the UK's growing requirement for supported accommodation.

The real estate investment trust said it planned to list its shares on the main market of the London Stock Exchange. It said it expected net proceeds of £245m.

Responsible Housing said it would use the money to invest in housing for groups such as people with learning disabilities, the elderly and people with mental health issues. It said UK local authorities had a statutory duty to provide for these groups but there was a shortage of suitable housing.

Robin Minter Kemp, the company's chairman, said: "Responsible Housing REIT offers the opportunity to invest in a much-needed social resource, where demand is on an upward trajectory and yet there is a lack of suitable supported housing accommodation to cater for these vulnerable groups. We believe that we can help meet this growing requirement with a leasing model that meets the specific needs of the sector aligned to the aims of the Social Housing Regulator."

The company said investors would receive stable, inflation-linked income supported by benchmarked rents ultimately paid by the government. It is targeting a minimum dividend yield of 5% starting on 1 October 2022 with the potential for dividends to increase in absolute terms through inflation-linked leases.