Tritax Big Box REIT has announced details of a placing, open offer and offer for subscription of new ordinary shares, in aggregate equalling up to 113,636,364 new shares, at a price of 132 pence per new share. The target size for the fund raising is £150m and the issue price represents a discount of 7.1% to the closing price of 143.6 pence per existing ordinary share as at 27 September 2016, net of the second interim dividend of 1.55 pence per ordinary share. The issue price is a premium of 4.9% to the unaudited EPRA Net Asset Value per Existing Ordinary Share (128.91 pence as at 30 June 2016), net of the first interim dividend of 3.1 pence per Ordinary Share paid on 25 August 2016.
The Company says that it expects to use the net proceeds of the issue to acquire further investments and that its manager is engaged in detailed discussions with the owners of a number of attractive investment assets that are available for potential acquisition in the near term. The company’s board believe that the issue will diversifying the Company’s Portfolio in terms of both tenant exposure and geographical location and capitalising on the Company’s leading position in the UK Big Box logistics market; all the assets targeted to be acquired are expected to be value accretive for Shareholders over the medium term; an increase in the size of the Company should improve liquidity and enhance the marketability of the Company’s Ordinary Shares, resulting in a broader investor base over the longer term; and an increase in the size of the Company will spread its fixed operating expenses over a larger capital base, which should reduce ongoing expenses per Share.
Tritax Big Box REIT announces fund raise targeting £150m : BBOX