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(Alliance News) - Regional REIT Ltd on Monday said it will raise GBP50 million in gross proceeds via issue of new shares to pursue a substantial pipeline of potential deals.
The real estate company focused on UK office and industrial property assets expects net proceeds from the equity issue to total GBP48.3 million.
The company intends to issue 46.9 million shares via share placing, open offer, offer for subscription and intermediaries offer at 106.5 pence per share, a discount of 1.8% to the closing price of 108.4p on Friday.
Shares in company were trading 0.9% lower at 107.43p each on Monday afternoon.
Regional REIT said negotiations are ongoing over acquisition of a geographically diverse portfolio of six office assets. The company's investment manager, London & Scottish Property Investment Management Ltd, has also identified a significant pipeline of assets in excess of GBP500 million which meet the company's investment objective and policy.
The company continues to trade in line with board's expectations for 2019 and is targeting a dividend of 8.25 pence per share for the year, up from 8.05p paid a year ago.