Mill Group set to test investor appetite for a residential REIT

摘要

This week's news that Mill Group is preparing to launch a new REIT is unusual for two reasons: not only will it be the UK's first residential REIT, but the company will also be using crowdfunding to raise capital for the new fund. As residential REITs are an untested concept Mill is starting out small and looking to ramp up as confidence builds. The management team has committed £2m to the fund and is aiming to raise at least £2.5m from institutional investors. It is also looking to raise at least another £300,000 using the crowdfunding platform SyndicateRoom. Speaking to Property Week this week, Mill Group's executive director Simon Phillips said that by going down the crowdfunding route, the company hopes to reach a wider base of investors than would otherwise be possible. "We wanted to introduce an element of crowdfunding because it provides a route into the market for high net worth individuals and professional investors, as well as the institutions that would normally be approached for an IPO," says Phillips.