QuotedData’s morning briefing 19 July 2024 – IPU, SGRO, RGL, NRR/CAL

In QuotedData’s morning briefing 19 July 2024:

• Following an announcement on 22 May 2024 that it intended to offer its shareholders an “elective return of capital” for up to 10% of its issued share capital, Invesco Perpetual UK Smaller Companies (IPU) has now published a circular in relation to the provision of an elective Special Dividend together with the cancellation of the shares on which the dividend is paid. On the condition that they give up the corresponding part of their shareholdings, all IPU shareholders will be offered an opportunity to elect to receive a special dividend in respect of each share so elected, amounting to 97.5% of the Net Asset Value (NAV) per Share as at the NAV certification date (so, effectively at a 2.5% discount to NAV meaning that the transaction will be NAV accretive to remaining holders). The proposals are subject to shareholder approval and a general meeting is being convened on 5 August 2024 for this purpose. We would recommend shareholders read the prospectus in full before deciding how they wish to proceed.
• SEGRO (SGRO) has sold a portfolio of logistics warehouses in Italy for €327m. The portfolio consists of four warehouses, two located in Milan and two in Rome, and has a total floor space of 338,745 sqm. All of the warehouses were developed by Vailog SEGRO and the portfolio is fully leased to three different customers active in the online and traditional retail sectors. The portfolio generates a passing rent of €19m and has an average WAULT of 10.5 years.
• Regional REIT (RGL) secured shareholder approval for its £110.5m capital raise and 10 to one share consolidation at an EGM yesterday. 72.6% (£80.2m) of the capital raise was taken up in the open offer, while the remaining 24.4% was allocated to Bridgemere, which had underwritten the raise. Bridgemere now owns 18.7% of the company following the raise. RGL will use the proceeds to pay its £50m retail bond, which matures in August, lowering its LTV from 56.8% to 40.6%, as well as providing it with capital to deploy on its portfolio.
• Private equity company Praxis Group has announced that it is in the early stages of considering a cash offer for Capital & Regional (CAL). Praxis is one of the largest specialist managers of shopping centres in the UK with 19 centres under management comprising more than 1,000 shop units. Meanwhile, NewRiver REIT (NRR) has been given extra time in its negotiations to acquire fellow retail landlord Capital & Regional (CAL). It initially expressed an interest in the company in June and has since received two extensions to its deadline to firm up an offer.