London & Stamford Property said today it planned to raise a £200m war-chest by floating on the London Stock Exchange’s AIM market.
The company, set up by ex-Pillar directors Patrick Vaughan, Raymond Mould and Humphrey Price, wants to take advantage of falling values in property due to the rising cost of money following the credit crunch and low yields.
L&S, which expects to have a market capitalisation of £250m at listing in early November, said it would in UK property and to a limited extent in overseas property.
‘The UK property market appears to be on the verge of a correction in values,’ said non-executive chairman Raymond Mould. ‘My colleagues and I have seen this before and have agreed to seek to list our properties once again because we believe this correcting market will offer excellent opportunities.’
General Electric Pension Trust, a major backer of London & Stamford Investments, is expected to invest £18m in the placing.