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(Alliance News) - Picton Property Income Ltd said Wednesday it intends to raise funds through a share placing, in order to fund asset management initiatives within its portfolio and explore further acquisition opportunities.
The total funds to be raised, as well as how many shares to be issued in the bookbuild process will be agreed on by the company and joint bookrunners Stifel Nicolaus Europe Ltd and JP Morgan Cazenove.
The placing is expected to close on Tuesday next week.
The shares will be issued at a price of 94.5 pence per share, reflecting a 2.4% discount to Picton's closing price on Tuesday of 96.8p.
Shares in the property-focused investment firm were down 1.7% at 95.20 pence on Wednesday.
Picton said it has identified 20 separate asset management initiatives in its portfolio, with a total cost of GBP15 million. Working on such initiatives is expected to improve the quality of the company's existing portfolio, and deliver higher rental income and occupancy over time.
Proceeds from the placing will also be used to reduce the amount drawn from two revolving credit facilities that Picton has with Santander. As at March 31, GBP26 million has already been drawn.
"The proceeds from the placing will be used to fund important asset management initiatives across the portfolio and if appropriate take advantage of acquisition opportunities arising from current market conditions," said Chief Executive Michael Morris.