Solitaire trust launch stalled
Article Date: May 31 2001Property manager Solitaire's plan to launch the first ever listed housing investment trust has fallen through but joint managing director Graham Shapiro is confident that an alternative plan will succeed. Ben Cobley reports.
Many market observers were very excited about prospects for Aim-listed Solitaire (STG) and its status as prospective property manager for the Williams de Broe sponsored First Housing Investment Trust. This was going to raise £33 million to invest in residential property.
Shapiro says that the float was '24 hours away from success', but was felled by a £1 million shortfall in the fundraising. However Shapiro, a solicitor with extensive property management expertise, thinks a 'future product' could be on the table within a few weeks.
He claims the level of interest among 'the great and the good' should be enough for it to gain the necessary level of acceptance. City groups Singer & Friedlander and Cazenove were among the backers of the venture, which an announcement has coyly admitted 'could have a significant effect on profits'.
Meanwhile, Solitaire has also concluded the acquisition of north London property management, commercial estate agent and advisory firm Moss Kaye & Roy Frank for a maximum £1 million, half of it in cash and the rest in loan notes payable over three years. Shapiro describes the company as 'a quality company with a high level of expertise', giving both sides significant cross-selling opportunities.
The company's latest figures showed pre-tax profits for the six months to June last year surging from £46,000 to £515,000 on turnover up 23 per cent to £2 million. At 325p, the shares have risen from 205p this year and are only 10p off their 2001 high.
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