3rd Oct 2013 11:00
LONDON (Alliance News) - Palace Capital shares were re-admitted to trading Thursday at 11.35am, AIM confirmed.
It follows a request by the commercial property Thursday morning for restoration to trading on AIM of its existing share capital of 31.6 million shares.
The company proposed a GBP23.5 million placing to part fund the GBP39.3 million acquisition of the Sequel Portfolio from Quintain Estates.
Palace Wednesday, said it would pay for the properties by raising GBP23.5 million through a share issue and using a GBP20 million debt facility from Nationwide. Quintain said it would take part in the share issue, taking a stake of about 2.5% in Palace Capital for GBP550,000 as a result.
The Sequel portfolio consists of 24 mixed use commercial properties in England and Wales, generating net rent of about GBP5.2 million or a yield of about 13.2%, Palace Capital said. The individual properties in the portfolio have been valued by Cushman & Wakefield at an aggregate sum of GBP44.2 million and at GBP39.7 million on a portfolio basis, it added.
Quintain said the properties it is selling made a pretax loss of GBP11.8 million in the year ended March 31.
The stock was trading at 2.20 pence, down 0.05 pence or 2.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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