Register Log-in Investor Type

News

Shaftesbury aims to raise £297m in placing

Shaftesbury Capital

Shaftesbury has announced its intention to raise £297m through a placing to firm up its balance sheet.

The company, which owns a 16-acre chunk of London’s West End including Carnaby Street, has been heavily impacted by COVID-19 and the ability of its retail and leisure tenants to pay rent.

The issue price of 400p is a huge 54% discount to its last reported EPRA net asset value per share of 878p (at 31 March 2020) and a discount of almost 20% to its closing price last night of 498p.

In early trading, Shaftesbury’s share price was down 17.5% to 410.8p.

Commenting on the placing of shares, it said:

“Shaftesbury has a virtually impossible-to-replicate real estate portfolio that extends to 16 acres in the heart of London’s West End. In common with many city centres across the world, the COVID-19 pandemic and the measures to contain it have had a significant impact on London and the West End. The continuing restrictions implemented by the government, and the uncertainty regarding their duration and extent, has had, and continues to have, a material adverse effect on normal patterns of activity and business in the West End.

“The group has seen a material deterioration in domestic and international footfall and trading conditions faced by its food, beverage and retail occupiers. Office occupiers, particularly those with direct or indirect exposure to consumer-facing businesses, and residential tenants have also been affected, but to a lesser extent. In turn, this has affected occupiers’ ability to meet both rental and other lease obligations and occupancy levels across the portfolio.

“Having assessed the group’s financial position in light of the implications of the COVID-19 pandemic for its short- and medium-term prospects, the board has decided to issue equity by way of a firm placing and placing and open offer and offer for subscription to help ensure the group maintains a strong financial base, is positioned to return to long-term growth as pandemic issues recede and, should conditions improve, is able to invest further in its exceptional portfolio.” 

Highlights of the issue

  • Issue of up to 37,147,884 shares through the firm placing, raising gross proceeds of up to £148.6m.
  • Issue of 37,102,116 shares through the placing and open offer, raising gross proceeds of £148.4m.
  • Under the open offer, qualifying shareholders will have an entitlement of seven shares for every 58 existing shares held.
  • Issue of up to 2,500,000 shares through a non-underwritten offer for subscription, in order to raise gross proceeds of up to £10m.

Shaftesbury has received commitments from shareholders representing 52.2% to participate in the placing, including Capital & Counties, which has committed to subscribe for £65m of new Shaftesbury shares taking its stake in its rival West End landlord to 25%.

JP Morgan Securities and Liberum Capital joint bookrunner, joint underwriter and joint global coordinator. Liberum is also acting as sponsor.

SHB : Shaftesbury aims to raise £297m in placing

previous story | next story

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…