24th Oct 2018 10:49
LONDON (Alliance News) - Target Healthcare REIT PLC on Wednesday announced plans to raise up to GBP40 million via a share placing to help it fulfil its purchase plans.
Target plans to place up to 36.7 million new shares at a price of 109 pence each - the stock was at 112.88p on Wednesday, down 0.1%.
The company said it has identified a pipeline of GBP51 million of "imminent" acquisitions, as well as GBP28 million of "near-term" purchases which it expects to be completed by the end of 2018.
The funds, which will be used alongside existing cash and debt to fund these acquisitions, will also go towards some longer-term opportunities.
Chairman Malcolm Naish commented: "We continue to see attractive opportunities in the market and have identified a strong short term pipeline of assets that meet our strict investment criteria and which are either imminent or in advanced negotiations for acquisition."
"These investments will allow us to continue to drive the positive momentum behind the growth of the portfolio, while increasing our exposure to the demographically strong south-east market and further diversifying the occupier base with the introduction of new tenants," he continued.
"Additionally, by bringing new shareholders onto the register and increasing the market capitalisation of the company, the issue of equity will support improved liquidity and reduce the company's ongoing costs per share."
Related Shares:
Target Healthc.