23rd Sep 2014 09:40
LONDON (Alliance News) - Custodian REIT PLC Tuesday said it plans to raise GBP20 million through a placing of new shares priced at 104.75 pence per share, which it considers to be a 5% premium to the current estimate of net asset value per share.
Custodian REIT's shares were quoted down 1.7% at 106.22 pence per share Tuesday morning.
The real estate investment trust said the issue will increase its net asset value and offer the opportunity to further diversity its portfolio.
The company has been on the acquisition trail since its initial public offering earlier this year. It snapped up a Toyota car dealership in Peterborough in a deal worth GBP2.5 million in May and more recently it acquired a retail portfolio for GBP17.4 million.
Custodian Tuesday said the proceeds of the issue will be invested on a "timely" basis. It plans to make a further announcement in due course.
The issue is expected to close around midday on October 2.
Numis Securties Ltd will act as bookrunners.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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