Shaftesbury looks to raise £265m as buys in Broadwick Street – Shaftesbury is placing up to 27,855,508 ordinary shares at 265p per share to raise gross proceeds of £265m. 952p is the same level as the EPRA NAV at the end of September 2017 and it is a 4% discount to the share price on 5 December 2017. The new shares equate to about 9.98% of the company’s issued share capital before this fundraise.
The money is being used:
- To fund the purchase of 72 Broadwick Street (see below) for £92m and a £20m capex spend on this property
- To fund the recently announced acquisition of 90-104 Berwick Street at a cost of £41m
- To help pay for £9m of other deals over the previous six months
- To fund £12m of existing development schemes
- and to fund potential deals over coming months.
72 Broadwick Street
72 Broadwick Street is situated at the eastern gateway to Carnaby, for GBP92 million (including costs). In its current configuration, the building provides 54,100 sq. ft. of office accommodation, eleven apartments extending to 11,200 sq. ft. and a large basement car park. It produces an income of GBP3.1 million, of which GBP2.6 million will cease when the office tenant vacates at the end of September 2018. The purchase initially increases the proportion of total Group income derived from offices by c.2% to 19%.
The freehold interest that has been acquired is subject to an existing un-geared long lease to the Group over the ground floor and part of the basement, comprising 13,900 sq. ft. of retail and a café. This leasehold interest was valued at GBP66.8 million in the 30 September 2017 results.
The acquisition gives the Group control over this strategically important 0.5-acre site. Subject to planning consents, it will provide opportunities, through change of use, reconfiguration and refurbishment, to create valuable new retail and restaurant space in the building. The office space remaining after these changes, together with the residential accommodation, will be refurbished. The Group’s plans include the relocation of the office entrance to the prominent eastern corner of the building on Broadwick Street. The estimated cost of the improvements is GBP20 million.
SHB : Shaftesbury looks to raise £265m as buys in Broadwick Street