24th Sep 2018 12:15
LONDON (Alliance News) - LXi REIT PLC said Monday that it intends to raise GBP100 million through an issue of 88.9 million shares at a price of 112.75 pence per share.
The share issue price reflects a 4.4% discount to the closing price of 118p on Friday last week. Shares in the real estate investment trust were down 0.9% at 117.00 pence on Monday.
LXi REIT will issue 44.5 million shares through an initial placing to raise GBP50 million, and another 44.5 million by a placing, open offer, intermediaries offer and subscription, also targeting GBP50 million.
Proceeds will go towards the acquisition of certain UK assets identified in the by LXi's investment advisor, which totals around GBP200 million in value, and is diversified across a range of sectors, including hotels, industrial and office.
Peel Hunt LLP and Bank of America Merrill Lynch are acting as joint bookrunners.
Should overall demand exceed the GBP100 million target, LXi reserves the right to increase the size of the issue to GBP175 million. Also conditional on the admission of shares, a group of Spanish family offices will invest an aggregate of GBP40 million, leading to them holding a 12% interest in LXi.
Related Shares:
LXI.L