LONDON (Alliance News) - Globalworth Real Estate Investments Ltd on Wednesday confirmed issuing EUR500.5 million worth of shares pursuant to a previously-announced placing.
The company issued 38.2 million shares at EUR9.10 each raising a total of EUR347.6 million.
The shares being issued represent over 28% of the existing issued ordinary share capital of Globalworth. Globalworth Real Estate shares were trading up 1.4% at EUR9.40 each.
Proceeds of the placing will be used to acquire new property, particularly offices, in Poland and Romania. Light industrial and logistics development projects in Romania are also a priority.
The placing will also help with Globalworth's long-term gearing target of achieving a loan-to-value ratio of less than 40%.
Admission of the new shares to trading is expected to take place on Friday, following which the firm will have 173.8 million shares in issue.
JP Morgan Cazenove acted as sole global co-ordinator and joint bookrunner and Jefferies acted as joint bookrunner in connection with the placing.
In addition, Globalworth said that South African real estate investment trust Growthpoint Properties International Proprietary Ltd agreed to subscribe for 1.6 million shares and will receive 16.8 million Globalworth shares, upping its interest in the firm to 29.8%.
The issue is in exchange for Growthpoint's entire holding of 95.5 million shares in Globalworth Poland Real Estate NV, or GPRE.
Growthpoint shares were 1.5% higher in Johannesburg at ZAR24.37.
Globalworth (GWI)