LONDON (Alliance News) - Property investors Shaftesbury PLC Thursday said it plans to place up to 25.3 million new shares, equating to 9.99% of its current share capital, to fund a property purchase and ongoing redevelopment schemes.
The London-focused property firm said it will also use the proceeds to finance the acquisition of a long leasehold in the commercial elements of a block fronting Charing Cross Road, New Court and Newport Place, known as Newport Sandringham, which allow it to take advantage of other potential future acquisition opportunities within its core "Villages" in London's West End.
Following the proposed placing and acquisition of Newport Sandringham, Shaftesbury expects to have available financial resources of approximately GBP185 million for further acquisitions and schemes.
"The acquisition of Newport Sandringham represents an important addition to our Chinatown Village," Chief Executive Brian Nickell said in a statement. "We expect in the medium-term to materially improve the property which will result in significantly higher net rental income and which should have compound benefits across our holdings in this exceptional location."
The placing will be priced by JP Morgan Cazenove and Liberum Capital.
The stock was trading at 643.50 pence Thursday, down 6.50 pence or 1.0%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com;
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