LONDON (Alliance News) - Green REIT PLC Friday said it intends to raise about EUR400.0 million by issuing about 357.0 million shares, with the proceeds earmarked for further property investments.
In a statement, the real estate investment trust said it intends to make a firm placing and placing and open offer to raise the proceeds. Each share will be issued at EUR1.12.
Green REIT shares were Friday quoted at EUR1.1278, down 4.8%.
About 89.2 million new shares will be issued through the firm placing to raise EUR100.0 million, with another 267.7 million to be issued through the placing and open offer to raise about EUR300.0 million. Green REIT estimated that it will receive EUR385.0 million in net proceeds after expenses.
"Green REIT raised gross proceeds of EUR310 million in July 2013 and established itself as the first real estate investment trust in Ireland. The success of our listing and capital raise was based on a combination of our proven and experienced management team and our attractive timing. We established ourselves as an investor in the Irish commercial property market when market activity was increasing and values started recovering," Gary Kennedy, Chairman, said in a statement.
"We have now successfully deployed EUR335 million of equity and debt over a nine month period - consistent with our stated strategy. Our objective now is to raise additional capital to grow the size of our portfolio, enhance our income stream and drive shareholder returns," Kennedy added.
JP Morgan Cazenove and Davy are joint bookrunners.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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