Power Corporation, which has a half-share in the Trocadero development at Piccadilly Circus, is raising I£21m (£17m) via a rights issue to buy an office building in Los Angeles, California.
The company has agreed to pay $85m for Equitable Plaza, a 639,500-sq ft-net building in Wilshire Boulevard. Power is buying it in partnership with Scott Malkin, a US property investor. Of the purchase price, $10m will be paid in cash, $20m financed through a non-recourse loan secured on the property, and $55m is coming by way of a mortgage provided by the vendors, RREEF USA Fund-I, a California group trust.
According to Power, its pre-tax profits for the year to December 1988 are due to come in at around I£16m. During 1988, Power sold I£14.4m worth of Irish properties, making a profit of I£12.3m.
The rights issue is on a one-for-three basis at I£1 per share, or 81.5p sterling per share. It is not underwritten, but Power has received commitments to take up 38.87% of the issue.
