21st Oct 2019 19:01
(Alliance News) - Vordere PLC on Monday said it has agreed to acquire five properties in Brazil for GBP25.9 million in shares.
Four of the properties are in Rio Grande do Norte and the fifth is in Pernambuco Brazil. The acquisition stems from negotiations which began in May 2018. All five were valued by ReMax.
Vordere has allotted 129.3 million new share prices at 20 pence each as consideration, taking its total shares in issue to 607.0 million.
Vordere's assets now total GBP110 million, up from GBP84.5 million on August 31, with net asset value per share up 8.3% at 18.18p versus 16.81p at the end of August,
Chief Executive Nicholas Hofgren said: "We are delighted to have acquired these properties in Brazil. The acquisition is in line with our stated strategy to increase diversification, and in particular, in markets straightforward for real estate development. This is also in line with our strategy to acquire property in higher growth economies, such as that of Brazil, in order to balance the overall portfolio and provide greater opportunities for faster and more balanced growth of NAV per share.
"We are in particular very pleased that we were able to structure the transaction in such a way as to avoid any drag on NAV from real estate transfer tax. We would also note our extreme satisfaction that the sellers of the assets expressed their confidence in the current management team and strategy of Vordere, accepting GBP0.20 of value per share of Vordere.
"With the acquisition we have also reached our short-term target to increase our total assets to over GBP100 million, whilst enhancing the net asset value per share. Our medium-term goal remains to continue to undertake further acquisitions, utilising our equity and cash resources, that will enhance shareholder value and deliver medium to long term counter-cyclical gains for our shareholders."
Shares in Vordere are currently suspended. The company requested that its shares be temporarily suspended from Main Market trading in early July so it could assess its financial position.
By Anna Farley; [email protected]
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