13th Feb 2020 09:58
(Alliance News) - Residential property landlord Grainger PLC on Thursday said it intends to raise GBP185 million to fund new acquisitions and pursue projects currently in the planning and legal pipeline.
The Newcastle-based company expects to place up to 61.2 million new ordinary shares through an accelerated bookbuild, with the price yet to be determined. Grainger shares in London were down 0.2% at 311.48 pence each on Thursday morning.
The placing, along with additional GBP120 million debt financing, is expected to generate an aggregate funding capacity of GBP305 million for the company.
"This funding capacity will enable the company to accelerate its successful private rental growth growth strategy by committing to a further GBP246 million of new acquisitions into its secured pipeline. In addition, the GBP305 million gives the company headroom to pursue a further GBP59 million of projects currently in the planning and legal pipeline," Grainger said.
Helen Gordon, Grainger's chief executive, said: "We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline.
"Today's placing will enable us to bring forward GBP246 million of investment for four new schemes, three of which are in strong regional cities, delivering 1,160 new homes, as well as expand our planning and legal pipeline, accelerating the delivery of net rental income and earnings growth.
"The outlook for the UK's private rented sector is positive, with growing customer demand and structural undersupply supporting the investment case," she added.
By Tapan Panchal; [email protected]
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