A new business formed to invest in under-performing property companies, Terra Catalyst, is to raise £116m on AIM.

The money raised is a combination of cash and stock swaps, the latter being assets that were seen by the company as being in line with its investment strategy.

The Cayman Isles-based business is now seeking undervalued securities that it will attempt to boost and utilise.
In order to find the right deals it has appointed activist investment manager Laxey Partners to handle its investment strategy.

Business law firm LG, which advised the business on the float, believes that the float will be one of the biggest this year in terms of money raised.

“The launch of Terra Catalyst will be one of the biggest fund raises on AIM so far this year,” said corporate finance partner Nick Heather.

“It helps to further consolidate the strong reputation of our funds group, particularly in the alternative asset sector, and confirms our continuing involvement in the biggest and most high profile AIM transactions,” he added.

“This was a tremendous fund raising in light of the prevailing market conditions and shows the confidence of investors in Laxey Partners' successful track record in this area and the attractiveness of this product in the current market place.”

The nominated adviser and broker was Fairfax I.S. Plc who was represented by Travers Smith.

© Crimson Business Ltd. 2008