Re: Admission to trading

RNS Number:9188V
Local Shopping REIT (The) PLC
02 May 2007

2 May 2007


                         The Local Shopping REIT plc
               Admission to trading on the London Stock Exchange

Key points:

    The Local Shopping REIT plc ("LSR"/"the Company"), a UK resident property 
     investment company, announces that its Ordinary Shares have been admitted 
     to the Official List of the UK Listing Authority and commenced trading
     on the London Stock Exchange.

    The Company successfully completed an oversubscribed placing and offer for 
     subscription, raising 160 million

    The demand for the placing demonstrates both a strong appetite from 
     investors for exposure to investing in local shopping assets in the United
     Kingdom offering the potential for income and capital growth and strong 
     support for the Company's highly experienced management

    The Company is self-managed.  The Board of the Company comprises joint
     Chief Executives Mike Riley and Nick Gregory with Victoria Whitehouse as 
     Finance Director. Grahame Whateley is non-executive Chairman and Andrew 
     Cunningham (of Grainger Plc) and Nick Vetch (of The Big Yellow Group Plc) 
     are non-executive directors

    The Company aims to pay its shareholders dividends which it intends will 
     provide an initial target annualised gross dividend yield of 4.75 per cent.
     on the 174 pence issue price

    The Company expects this target dividend yield to grow by the UK Index of 
     Consumer Prices from September 2008

    As at the date of the prospectus, the Company had built up a portfolio
     valued at 207.7 million of property spread across 484 assets, with 1,409
     tenants producing an overall net rental income of 13.8 million per annum.  
     The Company plans to invest a further 143 million into additional property 
     by 30 September 2008

    The Company's shares will trade under the name "LSR"

    JPMorgan Cazenove Limited has been appointed Financial Advisor and Broker 
     to the Company.

Grahame Whateley, Chairman of The Local Shopping REIT plc, said:

"We are delighted to have successfully completed the Offer, enabling us to
welcome a wide range of institutional investors to the Company. We believe that
we are providing a unique opportunity for investors to gain access to a strong
and diverse portfolio of local shopping assets, which will benefit greatly from
the expertise of our highly experienced management team."

Mike Riley, Joint Chief Executive, The Local Shopping REIT plc, said:

"We are very excited to be embarking on the next phase of The Local Shopping
REIT's evolution. Our accretive business model and prospects for growth are
clearly appealing to institutional and retail investors alike."

Nick Gregory, Joint Chief Executive, The Local Shopping REIT plc, said:

"With the capital raising process successfully completed, we will now continue
our focus on acquiring good quality assets, creating additional opportunities
through our established network of agents and unlocking additional value through
our asset management skills."

For further information please contact:

The Local Shopping REIT plc                                     +44 20 7187 4444
Mike Riley
Nick Gregory

JPMorgan Cazenove                                               +44 20 7588 2828
Robert Fowlds
Edward Gibson-Watt

Financial Dynamics                                              +44 20 7831 3113
Stephanie Highett
Dido Laurimore

Important information

The target gross dividend yield of the Company is a target only and is based on
assumptions and projections, including with respect to the Company's property
portfolio, capital structure, costs and expenses, and real estate market and
general economic conditions. These assumptions and projections are based on the
Board's judgements, estimates and beliefs as well as current market conditions,
and are therefore subject to change. There can be no guarantee that the Company
will achieve its targets annualised dividend yield.

The price and value of securities may go down as well as up. Past performance is
not necessarily a guide to future performance and failure of any assumptions and
projections with respect to the Company to be accurate or correct may adversely
impact the value of the Company's securities. Persons needing advice should
contact a professional adviser.

All statements in this announcement that are not historical fact are forward
looking statements, including, without limitation, statements regarding the IPO,
the expected proceeds from the IPO, the intention to list on the London Stock
Exchange, the target gross dividend yield of the Company, the quality,
composition, size, diversification and performance of the portfolio, the
Company's ability to generate above average returns and its growth prospects and
statements containing the words "believes", "estimates", "anticipates", "expects
", "intends", "assumes", "may", "will", or "should" or in each case, their
negative or other variations or similar expressions. Forward looking statements
involve known and unknown risk, uncertainties and other factors which may cause
actual results to differ materially from any future results, performance or
achievements expressed or implied by such forward looking statements.  Subject
to any regulatory obligation, the Company expressly disclaims any obligation to
update or revised forward-looking statements to reflect any change in
expectations, new information, subsequent events or otherwise.

This communication is made by JPMorgan Cazenove Limited. JPMorgan Cazenove
Limited, which is authorised and regulated by the Financial Services Authority,
is acting for the Company only and will not be responsible to any other person
for providing the protections afforded to its clients or for advising such
person on the matters referred to in this announcement.

This document is an advertisement and does not constitute or form part of, and
should not be construed as, an offer to sell or issue, or a solicitation of any
offer to buy or subscribe for Shares, nor should it or any part of it form the
basis of, or be relied on in connection with, any contract or commitment
whatsoever. This document is not a prospectus.

This document does not constitute, and may not be used for the purposes of, an
offer or an invitation to subscribe for Shares by any person in any jurisdiction
in which (i) such offer or invitation is not authorised; or (ii) in which the
person making such offer or invitation is not qualified to do so; or (iii) to
any person to whom it is unlawful to make such offer or invitation.

Background information

The Local Shopping REIT plc is a limited liability, UK resident, self-managed,
closed ended investment company which, shortly following Admission, will elect
to become a Real Estate Investment Trust. The Company's capital structure will
consist solely of Ordinary Shares and the Company will have an indefinite life.
The Company's investment objective is to provide shareholders with an attractive
level of income with the potential for income and capital growth. Its investment
policy is to focus on investments in 'local' retail assets in the United

Having developed the business concept with Grahame Whateley, Mike Riley and Nick
Gregory started the Company's activities in January 2005 and the Group began
acquiring properties in April 2005. Since that time, Mike Riley and Nick Gregory
have been responsible for identifying and acquiring investment properties
fitting the Company's business model, as well as negotiating investment finance
and effective asset management. Prior to Admission, the Company was owned 75% by
Castlemore Holdings Limited (which holds its interests for the benefit of
Grahame Whateley's family) and 12.5% each by Mike Riley and Nick Gregory.

The Board

Grahame Whateley, non-executive Chairman, has been in the property industry for
approximately 45 years, after qualifying as a surveyor. He founded Castlemore
Securities Limited (now a subsidiary of Castlemore Holdings) 36 years ago.
Castlemore is currently involved in developing a portfolio of office, retail and
large mixed use schemes worth over 1 billion around the country, totalling 10
million square feet of new space.

Nicholas Gregory, Joint Chief Executive. Along with Mike Riley, Nick was a
director at Castlemore Securities Limited between October 2002 and January 2005,
when he became a director of the Company. Previously, Nick was at UBS Global
Asset Management (UK) Limited from April 1996 to September 2002. At UBS, he was
appointed fund manager responsible for the management of a portfolio with a
value of 175m for Philips & Drew Second Property Partnership (later renamed
Triton Property Fund). His role included stock selection, purchase diligence and
sales, and he was later made responsible for all purchase and sales
transactions. He became a director in July 2000 and a member of the Property
Investment Committee in May 2001 with responsibility for setting fund strategy
and transaction approval for a fund with 568m of property assets (as at June
2002). Prior to joining UBS, Nick was a trainee surveyor at Chesterton from 1993
to 1996.

Michael Riley, Joint Chief Executive. Mike has been working in the property
industry since 1986. Along with Nick Gregory, he was a director of Castlemore
Securities Limited between October 2002 and January 2005, when he became a
director of the Company. Prior to joining Castlemore, Mike was at Quintain
Estates and Development Plc from July 2001 until July 2002, holding the role of
Chief Executive from March 2002. Previously, Mike worked at HVB Real Estate
Capital for four years where he became joint managing director in October 1999
and was responsible for the bank's marketing team. He also sat on its London
credit committee.  Prior to that he was at Chesterton International from 1989 to
1997. Mike trained as a chartered surveyor with Hillier Parker between 1986 and

Victoria Whitehouse, Finance Director. Victoria joined the Company as Finance
Director in January 2007 from ProLogis Developments Limited where, as Group
Financial Controller, she was responsible for directing the accounts team.
Victoria was with KPMG, between 1997 and 2005, becoming senior audit manager
responsible for a variety of clients with turnovers up to 350m per annum,
including publicly listed companies and a property group. Victoria trained with
Felton & Co in Birmingham and qualified as a Chartered Accountant in 1997.

Andrew Cunningham, Non-Executive Director, qualified as an accountant with
Deloitte Haskins & Sells, becoming a partner in 1989 with responsibility for a
broad range of audit clients. He joined Grainger PLC as Finance Director in
1996, becoming Deputy Chief Executive in 2002.

Nicholas Vetch, Non-Executive Director, was a co-founder of Big Yellow Group PLC
in September 1998. Prior to that he was joint Chief Executive of Edge Properties
plc, which he co-founded in 1989 and which was subsequently listed on the
Official List of the London Stock Exchange in 1996 before being taken over by
Grantchester Properties plc in 1998. Mr Vetch is also a non-executive director
of Blue Self Storage S.L - a self storage operation in Spain.

The Company's management has also established a network of national and local
advisers, including active relationships with 4 specialist managing agents and
18 investment acquisition agents around the UK, who are kept in close touch with
the Company's objectives and progress. This strategy has greatly assisted in
identifying and converting investment opportunities and maximising asset
management benefits and is expected to continue to provide the Group with access
to potential acquisitions and facilitate the execution of transactions and
management. In all, over 50 agents are actively identifying investment
opportunities and providing asset management and professional services to the
portfolio. The management team engages and monitors agents' performance against
established rigorous standards. Supported by its professional advisers, LSR has
already established a reputation for swift and efficient deal execution, which
has led to repeat business with vendors and their agents on an off-market basis,
with consequent benefits for pricing and deal costs.

                      This information is provided by RNS
            The company news service from the London Stock Exchange