21st Jul 2015 15:00
LONDON (Alliance News) - Starwood European Real Estate Finance Ltd Tuesday said it has decided to substantially increase the size of the placing announced on Monday.
On Monday, the real estate debt investor outlined plans to raise up to GBP15 million before costs in a placing of new shares to fund new lending. At that time, the company did not announce a price or the amount of shares to be issued, but said the shares would be issued at a premium to its estimated unaudited net asset value of 99.94 pence at the end of June.
The money will be raised through a tap issuance under existing permission granted by shareholders.
On Tuesday, the company said it will issue up to 23.8 million shares, representing around 9.9% of its issued share capital, at a price of 103.0 pence per share. No other details of the placing have changed, it said.
Overall, that means the placing has increased to around GBP24.5 million from the previously stated GBP15.0 million.
The equity fundraising will be used alongside its GBP50 million revolving credit facility to fund a loan currently in execution, Starwood said.
The placing will close later Tuesday.
Starwood shares were up 0.9% to 106.91 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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