29th Jan 2014 11:23
LONDON (Alliance News) - Real estate investment trust McKay Securities PLC Wednesday said it plans to raise about GBP86.7 million through a share placing and open offer which it will use to fund acquisitions and expand its portfolio.
The firm said it will raise the funds by way of a firm placing, placing and open offer of 45.8 million shares at a price of 189 pence per share, a 1.0% discount to its 191 pence closing price Tuesday.
McKay said it hopes the capital raising, scheduled for February 19, will make it a more attractive investment prospect going forward and promote increased liquidity in the company's shares.
In a separate note, the REIT which focuses on London and the South East said its portfolio is now valued at GBP236.3 million compared with GBP233.2 million in September last year.
The portfolio was recently boosted by the acquisition of 1 Crown Square in Woking for GBP6.0 million.
Mckay said there is short term potential to increase the low average rental value of the multi-let property with the scope for more substitutional refurbishment and redevelopment in the medium term. The property currently goes for GBP11.60 per square foot.
The REIT said eight open market lettings were completed during the period within the portfolio totalling 31,430 square feet, with a combined contracted rent of GBP500,000 per year.
Lettings included buildings 1, 3 & 4 at Switchback Office Park, Maidenhead and the expansion of a tenant into an additional unit at the McKay Trading Estate in Poyle.
Overall the company's portfolio occupancy, by rental value, remained unchanged at 89% while there is "encouraging interest in a number of properties".
Financially, the group said it maintained a "sound" financial position with GBP155.0 million of loan facilities secured until at least 2016.
However, drawn debt increased to GBP107.0 million from GBP100.5 million in September due primarily to the Woking acquisition.
The group has cash and cash equivalents of GBP300,000.
The stock was trading at 197.75 pence Wednesday morning, up 6.75 pence or 3.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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