6th Mar 2014 15:06
LONDON (Alliance News) - Property investors Shaftesbury PLC Thursday said it raised gross proceeds of about GBP156.6 million after placing nearly 25.3 million new shares at 620 pence each, money it will use to fund a property purchase and ongoing redevelopment schemes.
The London-focused property firm said it will buy a long leasehold in the commercial elements of a block fronting Charing Cross Road, New Court and Newport Place, in London. It said the block, known as Newport Sandringham, will allow it to take advantage of other potential future acquisition opportunities within its core "Villages" in London's West End.
Following the proposed placing and acquisition of Newport Sandringham, Shaftesbury expects to have available financial resources of approximately GBP185 million for further acquisitions and schemes.
"The acquisition of Newport Sandringham represents an important addition to our Chinatown Village," Chief Executive Brian Nickell said in a statement. "We expect in the medium-term to materially improve the property which will result in significantly higher net rental income and which should have compound benefits across our holdings in this exceptional location."
The placing, which represented nearly 10% of the shares in issues ahead of the placing, was priced by JP Morgan Cazenove and Liberum Capital.
The stock was trading at 645.00 pence Thursday, down 15.00 pence or 2.3%.
By Anthony Tshibangu; [email protected];
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SHB.L