5th Mar 2019 16:16
LONDON (Alliance News) - Warehouse REIT PLC on Tuesday said it is considering equity fundraising in order to make acquisitions and strengthen its portfolio.
The real estate investment trust was admitted to AIM in September 2017 and raised GBP150 million. It acquired a seed portfolio valued at GBP108.9 million on its initial public offering.
Since then, Warehouse REIT has acquired another GBP186.8 million of assets, financed through the remainder of its IPO equity and partly by enlarging its debt facility.
The company's investment advisor, Tilstone Partners Ltd, typically has a potential pipeline of GBP1 billion for a 12-month period and screened more than GBP2.5 billion of assets in 2018.
"The investment advisor has recently witnessed an increase in the range of acquisition opportunities and believes the company is well-placed to capitalise upon this having identified a number of assets which meet the company's investment policy...giving rise to a near-term pipeline of capital deployment opportunities exceeding GBP100 million," said Warehouse REIT.
"With only limited resources available to complete acquisitions, the company is contemplating an equity fundraising to capitalise on this pipeline of near term opportunities, which it will seek to deploy, together with debt finance where appropriate, in line with its investment strategy," the trust continued.
If this fundraising does proceed, it will follow publication of a prospectus. Warehouse REIT said more details are expected "in due course".
Shares in Warehouse REIT were down 1.2% at 102.72 pence in London on Tuesday afternoon.
Related Shares:
Warehouse Reit