2nd Sep 2021 10:06
(Alliance News) - Grainger PLC said Thursday it has raised GBP209 million in a fundraising to help complement its net rental income and dividend.
The Newcastle-based residential landlord issued 67.4 million shares at 310 pence each.
Grainger was trading 1.3% lower in London on Thursday morning at 320.80p each.
As part of the placing, Chief Financial Office Rob Hudson acquired a total of 112,900 shares, taking his stake in the company to 0.02%.
Chief Executive Helen Gordon said: "We are delighted with the support we have received from our shareholders. Grainger has a well- articulated growth strategy to further strengthen our nationwide PRS market leadership position with 10,000 homes and a further pipeline to almost double that.
"Our vision is to continue to provide high quality, mid-market, well located rental homes. This placing secures significant growth in net rental income and therefore dividend."
Including additional debt of GBP144 million based on the company's loan-to-vale target range, Grainger will have funding capacity of GBP360 million.
The proceeds will be used to fund two recent acquisitions worth GBP95 million, and buy at least two more properties in the pipeline.
JPMorgan Securities PLC and Numis Securities Ltd are joint bookrunners.
By Paul McGowan; [email protected]
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