LONDON, 26 July 2004 – Read all today’s legal news and law announcements in LAWFUEL
Herbert Smith has advised Insight Foundation Property Trust Limited on its highly successful launch as a new listed property investment fund, and on its acquisition of 64 properties worth £290 million.
Insight Foundation Property Trust has raised £260 million through the issue of 260 million ordinary shares pursuant to a placing and offer for subscription sponsored by Cazenove & Co Ltd. The shares have been admitted to the Official List, and dealing in the shares commenced on 16 July 2004 on the London Stock Exchange. Clerical Medical subscribed for 160 million shares and the remaining shares were subscribed by institutional and retail investors.
Insight acquired 51 properties worth £195.25 million from Clerical Medical, and 13 properties worth approximately £98 million from Lunar Partnership Limited. It also intends to purchase up to a further £100 million of property as soon as it can funded by bank borrowings.
Insight Foundation Property Trust Limited will be managed by Insight Investment Management (Global) Limited, a subsidiary of Insight Investment Management Limited. Insight Investment Management Limited is the investment arm of the Halifax and Bank of Scotland Group.
A Herbert Smith team led by corporate partner Scott Cochrane and real estate partner Jeremy Walden advised Insight Foundation Property Trust Limited on the deal.
Scott Cochrane commented:
“We are delighted to have completed this significant transaction with Insight. This demonstrates that there is still a strong demand from investors for collective investment in property which we hope will be assisted by the Treasury’s further simplifying proposals for real estate investment trusts (REITs)”.