(Alliance News) - Capital & Regional PLC said on Friday it had raised GBP25 million through an open offer of shares to partially fund its acquisition of the Gyle Shopping Centre in Scotland.
Just over two weeks ago, the London-based real estate investment trust focused on community shopping centres announced it had agreed to buy the Gyle shopping centre in Edinburgh for GBP40 million.
It said back then that the proposed deal would be financed through existing funds held by the company, a new debt facility of GBP16 million and about GBP25 million from a fully underwritten open offer of new shares.
Announcing the outcome of its fully underwritten open offer, Capital & Regional said on Friday it had conditionally raised about GBP25 million through the capital raising after issuing a total of 46.3 million new shares at 54 pence per share on the basis of 4 new shares for every 15 existing shares held.
The company said existing shareholders had taken up 34.7 million of the new shares, representing about 75% of the total offer.
Growthpoint Properties Ltd, the company's largest shareholder, had subscribed for another 11.6 million new shares, taking the total participation in the open offer to 40.4 million shares, or around 87%.
Following the share purchase, Growthpoint will own 67.6% of Capital & Regional.
Capital & Regional had said the Gyle shopping centre acquisition presented it with a number of asset management opportunities, including refining the tenant mix, a renewed focus on leasing to improve occupancy and income, while enhancing the centre's appeal to the growing and affluent catchment in south western Edinburgh.
Shares in Capital & Regional were 0.3% lower at 57.80 pence on Friday morning in London. They were flat at ZAR13.30 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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Capital & Regional (CAL)