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(Alliance News) - Target Healthcare REIT PLC said Thursday it raised GBP80 million from an oversubscribed share placing, considerably above the GBP50 million original goal.
Target will issue 72.4 million shares at 110.5 pence each as part of the placing. Shares in Target were 2.9% higher at 113.60 pence in London on Thursday, giving it a market capitalisation of GBP437.5 million.
Despite increasing the number of placing share available amid the strong demand, Target said the demand "still exceeded the gross proceeds targeted and as such a scaling back exercise has been undertaken."
In early September, Target proposed raising GBP50 million in order to continue to develop its healthcare-focused property portfolio. On Wednesday, the firm had announced it expected to raise "in excess" of GBP60 million amid investor support.
"The success of this oversubscribed placing is a strong endorsement of our investment strategy and will enable us to continue with our efforts to grow the size and scale of the business," Target Chair Malcolm Naish said.
"We have identified a significant pipeline of opportunities that will deliver strong returns to our investors whilst bringing tenant and geographic diversification to the portfolio and maintaining our commitment to owning the best quality care homes", Naish added.
After admission - expected next Monday - Target will have 457.5 million shares outstanding.
By Ahren Lester; ahrenlester@alliancenews.com
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