18th Apr 2016 09:02
LONDON (Alliance News) - Target Healthcare REIT Ltd, the London-listed owner of thirty-three care homes with a market value of GBP184.0 million, on Monday got its new fundraising plans underway, in a move to raise GBP75.0 million by selling shares in an initial placing as part of a broader programme.
The real estate investment trust plans to raise the money by issuing up to 71.4 million new shares at 105 pence per share, funding a "near-term" pipeline of GBP68.7 million. The company reserves the right to increase the size of the initial placing and offer up to 100 million shares. The stock was up 0.1% at 108.09p on Monday morning.
That pipeline includes GBP14.9 million of assets Target has committed already to fund. Target hopes to acquire, or commit to acquire, the remaining GBP53.8 million of other investment opportunities by June 30.
In addition, Target Advisers LLP, the advisory and property management services provider founded by Kenneth MacKenzie, has made initial indicative offers on a further GBP32.3 million of assets. Target Advisers is the investment manager of Target Healthcare REIT.
"This transaction will allow Target Healthcare REIT to take advantage of a substantial pipeline of opportunities in both the near- and longer-term which we believe will provide significant value to shareholders," Malcolm Naish, chairman of Target Healthcare REIT, said in a statement.
After taking into account its working capital and corporate requirements, together Target Healthcare REIT's cash reserves and remaining headroom in its bank facility provide about GBP30 million of available cash for new investments.
By Samuel Agini; [email protected]; @samuelagini
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