12th Jan 2015 09:48
LONDON (Alliance News) - Ground Rents Income Fund PLC Monday said it plans to raise up to GBP9 million before expenses in a share issuance priced at 107 pence per share.
The company said it will use the funds to complete a pipeline of investments, including a number of option agreements, which it said would provide its shareholders with further "high-quality, income-producing assets".
Ground Rents Income Fund said it plans to issue up to 8.5 million new shares in the placing, while it said the issue price of 107 pence represents a 2.6% premium to its last reported net asset value of 104.3 pence per share as at September 30.
The company also said that it has agreed a short term debt facility of up to GBP5 million, to fund working capital and exercise a number of option agreements over assets currently under construction, which have been agreed over the last 12 months.
The placing is being led by N+1 Singer, who will commence a bookbuilding process to determine the level of demand from potential investors for the the placing.
Ground Rents Income Fund shares were untraded Monday morning. The stock was last traded at 107.88 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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