LONDON (Alliance News) - Real Estate Credit Investments Ltd on Thursday tabled plans to establish a placing programme under which it will be able to issue 65.0 million shares, with an initial placing planned to raise GBP20.0 million.
There are currently 72.8 million Real Estate Credit shares in issue.
The company, which invests in real estate loans and bonds, said recently completed investments and its pipeline of opportunities are evidence of "improved volumes, lower risk profiles and improved economics" for UK and German real estate credit market investments in the wake of the Brexit vote.
Real Estate Credit said as such, launching a placing programme will be in the best interests of the group and its shareholders.
Real Estate Credit has appointed Liberum as a sponsor and bookrunner for an initial placing, which is expected to include one investor who has committed to subscribe for up to GBP20.0 million of new shares, subject to scale back for new and existing investors. The new shares will be issued at a placing price of 162.50 pence per share.
Shares in Real Estate Credit were down 0.2% at 162.00p on Thursday afternoon.
Alongside this, the group said it proposes implementing a placing programme by which it will be able to issue up to 65.0 million shares over the next 12 months, and to amend its investment policy to "further clarify" the types of investments and markets it will invest in.
Real Estate Credit also put forward a proposal to permit leverage in the company of up to 40% of net asset value which it said should allow it to take advantage of investment opportunities and use lower cost and more flexible finance.
Shareholders will be able to vote on the proposals at a meeting to be held in March and more details will be sent to shareholders in "due course".
The placing has launched immediately.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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