Leicestershire property group Custodian have closed the placing announced earlier this month, raising £44.25 million (before costs and expenses) through the issue of 42,466,411 new ordinary shares of 1p each in the capital of the Company which will now be issued at 104.2 pence per share.
The Company will use the funds to complete on the eleven UK commercial properties which it agreed to purchase for £69.4 million.
The acquisition is now expected to complete in early January 2016 and will be financed through a combination of the Issue proceeds and drawing down on the Company’s existing credit facilities.
Commenting on the move, Richard Shepherd-Cross, Managing Director, said: “We have been delighted by the positive response from existing shareholders and new investors to the Issue. Since Admission, Custodian REIT has acquired 56 small lot size, regional properties for £149.6 million, consistent with the Company’s investment policy and which support the target dividend. The Board believes the anticipated acquisition of the balance of the portfolio will enhance returns to shareholders by deploying cash, undrawn debt facilities and proceeds from the Issue promptly, further improving dividend cover.”