9th Feb 2016 10:54
LONDON (Alliance News) - Phoenix Spree Deutschland Ltd said Tuesday it is proposing a placing to raise up to GBP38.0 million, along with a placing programme to allow it to raise capital in a "efficient and cost-effective manner" over the next year.
The London-listed German real estate investment firm said it will raise up to GBP38.0 million through the issue of up to 19.6 million shares in a placing with Liberum Capital Ltd, and the issue of up to 3.0 million shares through an offer for subscription, all at 168 pence per share.
Shares in Phoenix Spree Deutschland were up 0.3% at 167.00 pence Tuesday morning.
The company said it will use the funds raised from this initial issue to invest in accordance with its strategy and investment objective. It will propose a placing programme to raise capital between March 7, 2016, and February 8, 2017, as and when it identifies properties that are suitable.
The issues are subject to shareholder approval at an extraordinary general meeting March 3.
"We are delighted to announce this fundraise. Since we listed in June 2015 we have actively grown our portfolio as well as reinvested in maximising the value of our existing assets. The proceeds raised will give us greater opportunity to continue to implement our strategy of delivering value to shareholders by increasing exposure to the attractive German residential market," said Chairman Robert Hingley in a statement.
"The funds raised will be used to grow the portfolio with assets that meet our criteria and offer significant scope for value creation. The placing programme will enable us to act more quickly and take advantage of opportunities to add to our portfolio as they arise," Hingley added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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