LONDON, July 7 UK Mortgages, aninvestment fund focused on Britain's residential mortgagemarket, said on Tuesday it had raised gross proceeds of 250million pounds to build a portfolio of loans that offer stableincome streams in volatile financial markets.
The fundraising was executed via a placing and open offer ofordinary shares at an issue price of 100 pence per share andattracted demand in excess of 325 million pounds ($505.28million), the company said.
Headquartered in Guernsey, UK Mortgages is run by TwentyFourAsset Management and targets a net total return of 7-10 percenta year.
UK Mortgages Chairman Chris Waldron said the funds wereraised in a "significantly oversubscribed fundraising," addingthat "the demand for the product is testament to the assetclass' potential returns."
"The income potential and historically low correlation toother asset classes has clearly appealed to investors," saidTwentyFour Chief Executive Mark Holman.
UK Mortgages aims to pay a dividend of 3 pence per ordinaryshare for the financial year ending June 30 2016 with a firstinterim dividend to be paid in April 2016.
Numis Securities Limited acted as UK Mortgages' broker andfinancial adviser and will continue working with the company.($1 = 0.6432 pounds) (Reporting By Pamela Barbaglia, editing by Sinead Cruise)
http://www.reuters.com/article/2015/07/07/uk-mortgages-share-placement-idUSL8N0ZN0Y120150707
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