(Alliance News) - LXi REIT PLC announced on Tuesday a proposed issue of new shares to raise target gross proceeds of GBP125 million.
Shares in LXi REIT were down 3.8% at 146.60 pence on Tuesday morning in London.
The London-based real estate investment trust said the proceeds would be raised by way of a subsequent placing, open offer, offer for subscription and intermediaries offer under the company's share issuance programme.
The subsequent issue will target the issue of 88.3 million new ordinary shares at an issue price of 142 pence per share. The issue price represents a discount of 6.8% to the closing price per share yesterday of 152.4p per share.
Potential proceeds will used to further the company's pipeline assets, LXi REIT explained, which total approximately GBP272 million. These assets are diversified across a range of sub-sectors, location and are leased to a range of institutional-grade tenants, LXi REIT added.
The results of the subsequent issue are expected to be announced in early February 2022.
Chair Stephen Hubbard said: ""This proposed subsequent issue will provide the capital to enable the company to capitalise in short order on its GBP272 million near term pipeline of accretive assets. The pipeline will further enhance and diversify the company's portfolio of properties and is available at an average net initial yield of approximately 5.2%, which is higher than the current portfolio valuation yield of 4.5%."
By Heather Rydings; heatherrydings@alliancenews.com
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