Leslau’s Secure Income REIT Jumps in London Trading DebutPatrick Gower
Secure Income REIT Plc, the U.K. real estate investment trust led by Nick Leslau, gained 23 percent on its first day of trading in London as investors sought to benefit from a revival in Britain’s property market.
The REIT was up 40 pence at 214 pence at the 4:30 p.m. close, giving Secure Income a market value of about 361 million pounds ($606 million). Its 28 commercial properties include the Madame Tussauds museum and tourist attraction in London, Alton Towers theme park and hotel, Warwick Castle and 21 private hospitals in the U.K. Merlin Entertainments Plc and Ramsay Health Care Ltd. are among the London-based company’s tenants.
“The idea is to offer a very secure, inflation-protected income stream,” Leslau, the REIT’s 54-year-old non-executive director, said by phone. “Institutional and private investors will be interested in long-term income in an environment where leases are very short and getting shorter.”
U.K. property values have been climbing as an improving economy boosts demand for stores, warehouses and office space. The average value of commercial real estate has risen about 8 percent during 12 consecutive months of growth, according to property-research firm Investment Property Databank Ltd.
The company’s properties are valued at about 1.5 billion pounds, according to a regulatory filing.
Leslau is chairman and chief executive officer of Prestbury Group Plc, which manages Secure Income REIT. He led the 2009 initial public offering of Max Property Group Plc, a U.K. real estate investment company.