Scotch Corner applies for IPO to support outlet village development
Scotch Corner Designer Village Holdings is set to apply for admission to trading on the Aquis Real Asset Market (ARAM) segment of the Aquis Stock Exchange Growth Market (AQSE).
The group – which is developing a retail and leisure destination in the North of England – has appointed Oberon Investments Limited and Retail Book Limited to raise £25.5m of new capital, targeting both retail investors and institutional investors, ahead of an intended flotation via an initial public offering (IPO) on AQSE.
The proceeds of the shares to be issued and admitted to trading on the ARAM segment of AQSE will be used to pay down existing debt and progress the construction of the first phase of the development, which comprises a 182,500 sq ft designer outlet village that is already around 66% pre-let to brands such as Calvin Klein, Hugo Boss and Tommy Hilfiger, as well as dining outlets such as Wagamama, Pizza Express & Five Guys, together with a 15,000 sq ft M&S. The proceeds will also contribute to funding the acquisition of land for phase two.
Additional financing for phase one of the development will come in the form of mezzanine and senior debt, which is to be advanced on or around the date of the listing.
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.
ARAM is a new tradable marketplace for the securitisation of real assets and infrastructure across the capital stack and risk spectrum, including single assets and debt instruments. It will also provide an alternative market to the LSE and other exchanges for traditional real estate investment trusts.
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 subsector. Scotch Corner is already largely pre let, and we therefore believe it is substantially derisked, 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 £1.3 trillion 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.”