3rd Oct 2013 10:27
LONDON (Alliance News) - Palace Capital PLC Thursday has requested restoration to trading on AIM of its existing share capital of 31.6 million shares, following a proposed GBP23.5 million placing to part fund the GBP39.3 million acquisition of the Sequel Portfolio from Quintain Estates.
Palace Wednesday, said it would pay for the properties by raising GBP23.5 million through a share issue and using a GBP20 million debt facility from Nationwide. Quintain said it would take part in the share issue, taking a stake of about 2.5% in Palace Capital for GBP550,000 as a result.
The Sequel portfolio consists of 24 mixed use commercial properties in England and Wales, generating net rent of about GBP5.2 million or a yield of about 13.2%, Palace Capital said. The individual properties in the portfolio have been valued by Cushman & Wakefield at an aggregate sum of GBP44.2 million and at GBP39.7 million on a portfolio basis, it added.
Quintain said the properties it is selling made a pretax loss of GBP11.8 million in the year ended March 31.
Palace said it has received confirmation that the admission document issued pursuant to the placing and the acquisition has been posted to Palace Capital shareholders.
The commercial property firm said it is expects that restoration will become effective at 11.30am Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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