6th Aug 2014 09:20
LONDON (Alliance News) - Palace Capital PLC Wednesday said it has entered a conditional agreement to buy Property Investment Holdings Ltd, a Weybridge-based property firm, in a deal worth a total of GBP32 million in shares and debt.
Palace will pay an initial GBP3.65 million to acquire Property Investment Holdings shares through the issue of consideration shares at 310 pence per share.
It will also take on GBP27.7 million in debt owned by Property Investment Holdings to Royal Bank of Scotland Group PLC and Lloyds Banking Group PLC.
Palace will part-finance the deal via a conditional placing of 6,451,612 shares at 310 pence per share in order to raise GBP20 million. The shares have been priced at a slight discount to the closing price of 332.5 pence per share on Tuesday. The deal has been arranged by Arden Partners PLC and Allenby Capital.
The portfolio Palace is buying comprises 17 commercial properties primarily located in the South East, generating a gross annual income of GBP2.5 million.
Palace shares were down 3.8% to 320 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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