Fladgate was pleased to act for KCR Residential REIT plc on the subscription by private equity fund, Torchlight for 9 million ordinary shares for a total subscription of £4.05m and the grant of an option to subscribe for an additional 50 million ordinary shares. KCR intends to consolidate its presence in the UK and to expand internationally (particularly in Australia, New Zealand and Germany) in the private rented sector and the build to rent sector.
This transaction required a dispensation from the mandatory cash offer requirement which would have arisen under Rule 9 of the Takeover Code.
Lead partner, Nigel Gordon commented: “We have a longstanding relationship with the KCR team and were delighted to be involved in this complex deal and look forward to working with KCR as it implements its exciting plans for the future. KCR considers Torchlight to be a cornerstone investor and there is a longer term strategy of cooperation between KCR and Torchlight, in particular its investee company RCL.”
CEO, Dominic White commented: “We are delighted to confirm the completion of an investment agreement with Torchlight. We always enjoy working with Fladgate and the continued support and expertise from Nigel and the wider team was crucial. As always, the team were pragmatic, strategic and diligent throughout”.
Nigel Gordon was supported by corporate associates, David Lee and Ashleigh Brinklow and employment associate, Caroline Philipps. Nigel drew upon the expertise of the wider Fladgate team comprising Paul Airley (corporate), Richard Reuben (property), Ed Morgan (banking and finance), Kelly Whiter (immigration), Kim Fowler (construction), Zevi Prager (property) and trainees Gerald Brent, Thomas Edwards, Tim Reinhard, and Yasmin Daswani.