19th Mar 2018 09:27
The real estate investment company said the placement consists of cash invested into the company, the novation of the rights to a debt and the conversion of part of the company's convertible loan note into equity. The company has raised equity of
KCR's debt has been reduced debt by
The company plans to use the proceeds to to buy blocks of rented studios, one and two-bedroom apartments at discounts to market value and assets to generate rental and capital growth.
The total new investment in KCR shares consists of an investment by an AIM listed company Energiser Investments PLC of
"This is a very positive step forwards for KCR and puts us in a strong position to acquire the next assets. The investment also represents a vote of confidence in our strategy to build a substantial residential property portfolio that generates secure income flow for shareholders. The combination of increasing revenues through acquisitions and rental growth, reducing debt costs and becoming more efficient as an operating platform moves us closer to being able to pay dividends. We intend to refinance the remaining debt at significantly lower rates and continue to grow revenues through accretive acquisitions from our strong pipeline of investment opportunities," Chief Executive Dominic White said.
Shares in KCR were un-traded at 67p on Monday.
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