20th Feb 2014 16:05
LONDON (Alliance News) - The UK's newest real estate investment trust, Redefine International PLC, Thursday raised around GBP54.7 million in a share placing of almost 115.1 million shares, which it said it will use to fund future acquisitions in the UK and Germany.
The company, which converted into a REIT at the end of 2013, said that due to excessive demand from new and existing investors in the UK and South Africa, it increased the placing size from 7.5% of its issued share capital, to the maximum placing size of 9.9%.
"Against a backdrop of improving markets and a benign interest rate environment, we see a growing number of opportunities for us to create and enhance sustainable value through selective acquisitions, accretive asset management opportunities and the early refinancing of our facilities," said Chief Executive Officer Mike Watters in a statement.
Redefine also hopes to use some of the funds to repay a GBP20 million working capital debt facility, saving an interest charge of around 6% a year and to support the early extension of 2016 debt maturities at lower loan-to-value ratios and lock-in current interest rates.
Redefine raised GBP16.8 million in a placing last year which was used to support the acquisitions of the the Weston Favell shopping centre for GBP84 million and CMC portfolio for EUR189 million, at yields of 7.2% and 5.5%, respectively.
The company has since disposed of GBP28.4 million of non-core assets.
Shares in Redefine International were trading 4.4% lower at 48.50 pence per share Thursday afternoon.
Story updated by Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Original story by Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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