The owner of the Scotch Corner Designer Village development has announced its intention to apply for admission to trade on the Aquis Real Asset Market (ARAM) segment of the Aquis Stock Exchange Growth Market (AQSE).
Scotch Corner Designer Village Holdings has appointed Oberon Investments (Oberon Capital) and Retail Book (RetailBook) to raise £25.5m of new capital, and is targeting both retail investors through RetailBook as well as institutional investors, ahead of an intended flotation via an initial public offering on AQSE.
The proceeds of the IPO will be used to pay down existing debt and progress the construction of the first phase of the development, which comprises a circa 182,500 sq ft designer outlet village that is already circa 66% pre-let and is expected to have a gross development value of circa £169m at practical completion, as well as funding the acquisition of land for phase two.
The listing is expected to complete in April 2026, at which time the AQSE listed shares in Scotch Corner are expected to be tradeable on major retail investment platforms, including Hargreaves Lansdowne and Interactive Investor.
Simon Waterfield, CEO of Scotch Corner Designer Village Holdings, said: “With the appointments of Oberon Capital and RetailBook, we are now commencing the fundraising process on what we believe is an exceptional opportunity for investors to benefit from the development of what will be the UK’s newest designer village, in the highest growth retail sub-sector.
“Scotch Corner is already largely pre-let, and we therefore believe it is substantially de-risked, and is perfectly located on the ‘crossroads of the North’ where it enjoys a catchment of some 4.5 million consumers living within an hour’s drive and is passed by some 29 million vehicles each year. The pre-letting success we’ve had to date, and the brands that have either signed up already or that we are in dialogue with regarding the remaining space, provide strong endorsement of the desirability of the location and underscore our confidence in our business plan.
“We expect to be the first company to IPO on the newly launched Aquis Real Asset Market, creating an important new corporate finance template that allows SME developers such as us to access capital, while allowing retail investors direct access to projects and the associated returns that are usually reserved for private equity type professional investors and developers.”
Michael Lynagh, director at Aram Advisors, added: “Having launched ARAM in the middle of last year and flagged that we were expecting Scotch Corner to be the first company to IPO on this new market, today’s announcement marks an important milestone in achieving our goal of creating a platform that democratises access to the £1.3tn UK real estate market, enabling the general public to invest in opportunities typically reserved for professional investors. We look forward to welcoming Scotch Corner onto Aquis in due course, and to proving ARAM’s position as a viable new capital raising option for real estate owners and developers.”
