(Alliance News) - LXi REIT PLC on Thursday said it raised gross proceeds of GBP250 million in a placing, increased from its initial placing following "exceptionally strong" investor demand that exceeded the maximum issue size.
In mid-January, the London-based real estate investment trust proposed an issue of new shares to raise target gross proceeds of GBP125 million. On Wednesday, LXi said that it will increase the target size of the equity raise to GBP250 million.
On Thursday, LXi noted demand for its subsequent issue "significantly" exceeded the maximum issue size.
It will issue a total of 176.1 million shares at 142 pence. Shares were up 0.4% at 143.34 pence each on Thursday around midday in London.
It explained that it had made the decision based on a strong level of support from shareholders, with demand already in excess of the higher target, and on a pipeline of investment opportunities that now exceeds GBP350 million.
The subsequent issue will be split into 66.3 million shares under an open offer, raising proceeds of around GBP94.1 million, and 95.5 million shares under a subsequent placing, raising around GBP135.6 million.
Lastly, 5.8 million new shares will be issued for subscription equating to about GBP8.2 million and an intermediaries offer with 8.5 million shares, raising gross proceeds of around GBP12.0 million.
"We have seen exceptionally strong investor demand for our issue, and together with the strength of our nearer-term pipeline of over GBP350 million of accretive investment opportunities and the Investment Advisor's track record of rapid deployment, we chose to double the size of our capital raise to GBP250 million," Chair Stephen Hubbard said.
"We are very grateful for the continued support from our existing and new investors. The company's strategy continues to be implemented successfully and we expect our secure, long-let index-linked portfolio to continue to perform strongly, benefiting from further growth, diversification and outperformance from predominantly off-market investments and forward funding opportunities, and to deliver further attractive inflation-protected income returns and capital growth for our shareholders."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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