27th Feb 2015 15:42
LONDON (Alliance News) - FTSE 250-listed real estate investor Redefine International PLC Friday said it has completed the placing of 131.4 million shares to raise a total of GBP70.9 million to back its investment plans in the UK and Germany.
Redefine also said it is trading in line with expectations and said it has signed up Primark as a tenant in a German shopping centre.
Redefine issued 131.4 million shares in order to raise funds to back new investment opportunities in the UK and Germany, the funding of initiatives within its existing portfolio and to increase its ability to secure attractive debt funding.
The shares were issued at 54.0 pence per share and ZAR9.70 per share. The company said the shares issued represent 9.9% of the ordinary share capital, prior to the placing.
Redefine shares were down 4.3% to 56.00 pence per share late Friday afternoon.
The placing was conducted via an accelerated bookbuild, with Peel Hunt and JPMorgan Cazenove as joint bookrunners.
Of the shares issued under the placing, 39.5 million shares, or 30% of the issued shares were allocated to Redefine Properties Ltd for GBP21.3 million.
Redefine said it is performing in line with expectations for the year to the end of August, with its overall core portfolio occupancy improving to 97.6% at January 27, compared with 97.3% at the end of its financial year in August 2014.
"We appreciate the continued support of our shareholders and look forward to deploying the proceeds, through targeted investment opportunities in the UK and Germany and disciplined asset management initiatives, in line with our strategy to generate consistent and growing income returns," said Chief executive Mike Watters.
Earlier on Friday, the company said the expectation of an extended low interest rate environment in key markets will be supportive of property prices and said it anticipates its distribution per share to be in line with market expectations this year.
In a separate statement, Redefine said it has signed a deal with Associated British Foods PLC's Primark fashion retail chain to take space at the City Arcaden Shopping Centre in Ingolstadt in Germany.
Primark will take a 5,200 square metre space in the centre, which Refine bought in August last year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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