(Alliance News) - Urban Logistics REIT PLC on Monday said it intends to raise GBP100 million through a share placing and an additional GBP6.7 million through an open offer and subscription of up to 4.9 million shares at 137.5 pence each.
The placing price represents a 7.7% discount to the closing price of 149.00p each on Friday. The stock was trading 3.4% lower on Monday afternoon in London at 144.00p each.
The real estate investment trust will issue 72.7 million placing shares at a price of 137.5p to raise GBP100 million. The open offer will give qualifying shareholders the opportunity to subscribe for up to 4.9 million shares at the same price on the basis of 1 new share for every 18 existing shares, raising an additional GBP6.7 million.
The proceeds realised will be used to acquire a pipeline of logistics properties identified by Urban Logistic's investment manager Pacific Capital Partners Ltd. The investments include three portfolios and 12 single assets, with a weighted average unexpired lease term of around 7.8 years, expected to have an average net initial yield of approximately 6.8%.
"Mid-box logistics assets at the end of evolving logistics chains are in short supply and offer excellent opportunities for investors seeking exposure to this high-growth sub-sector of the real estate market. We are in advanced negotiations on just under half of our GBP300 million pipeline, enabling the rapid deployment of funds raised pursuant to the Issue into accretive high-quality income-generating assets," said Chief Executive Richard Moffitt.
In a separate statement, Urban Logistics declared a special dividend of 3.85p per share in respect of its financial year ending March 31. The special dividend will bring the total dividend paid for financial 2020 to 7.60p.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Urban Logistics (SHED)