20th Jul 2015 07:31
LONDON (Alliance News) - Starwood European Real Estate Finance Ltd Monday said it wants to raise up to GBP15 million before costs in a placing of new shares to fund new lending, though increased competition has forced the company to re-consider the amount of money it can afford to pay out in dividends.
The real estate debt investor said its equity fundraising will be used alongside its GBP50 million revolving credit facility to fund a loan currently in execution, among others. The company said it could publish a prospectus for a 12-month placing programme that would allow it to raise additional capital, citing a "strong" pipeline of investments under review.
The money will be raised through a tap issuance under existing permission granted by shareholders.
Starwood European Real Estate Finance said the shares will be issued at a premium to its estimated unaudited net asset value of 99.94 pence at the end of June. The premium is there to pay for the costs of the placing.
Dexion Capital PLC, the company's corporate broker, is the bookrunner on the placing.
Investors taking up the new shares will qualify for dividend payments for the period between April 1 and June 30.
Starwood European Real Estate Finance, however, thinks it would be best to set its dividend target for 2016 onwards should be set 0.5 pence lower at 6.5p.
It said improving conditions in its market have stimulated competition among lenders, causing the company to question its targeted dividends.
In the short-term, the company is still aiming for a 7.0 pence dividend.
Shares in Starwood European Real Estate Finance were down 0.4% at 107.09 pence on Monday morning in London.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Starwood Eur