Walls & Futures REIT plc is raising £2m prior to admission to the ISDX growth market.

The aim of the property investment company is to provide shareholders with a sustainable income stream and long-term capital growth by investing in UK residential property. The target is to deliver a long-term annual return of 7-9% including a running yield of 3-4%.

Walls & Futures REIT plc builds on the 5year track record of the Walls & Futures London Growth Fund LP, which generated an un-geared return of 41.7 % (a gross annualised compound return of 7.7% yielding a net 7% compound return to investors after all costs).

The strategy will be to invest in cities and towns across the UK. However rather than simply buying ready made assets, there will be an emphasis on acquiring assets that can be developed or redeveloped to create value and enhance yields. The initial focus will be providing residential housing for the Private Rented and Supported Housing Sector, providing a blend of capital growth and higher yielding assets.

UK residential property has a structural deficit with increasing demand from a growing population and chronic undersupply leading to an annual shortfall of 105,000 new homes. The private rented sector is now worth £1.29 trillion and the rise of Generation Rent means that 20% of UK households are now renting. This is projected to increase to 25% by 2025.

The supported housing sector provides housing solutions for vulnerable people who require support and care services, especially those with mental health issues. There are over 125,000 places needed and a shortfall of over 15,500.

There is investor appetite for sustainable income and long term growth which residential property has proven it can provide. However recent changes by government such as increased stamp duty have increased transaction costs and changes to the mortgage market have made buy-to-let less accessible for individual investors.

says Joe McTaggart Chief Executive

Investing in Walls & Futures REIT plc is an affordable and hands off method of getting residential property exposure without the additional costs and responsibilities of private ownership. Additionally REITs are tax efficient as they are exempt from capital gain tax and corporation tax on property investments and pay out 90% of property income as dividends to shareholders.

Important Notice: The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to future results. A full list of risks applicable to Walls & futures REIT plc can be found in the ISDX Admission Document available from Walls & Futures or its corporate advisers, City & Merchant