Fabian Romania Property Fund has announced its admission to the AIM market of the London Stock Exchange.
Fabian said it has successfully placed 29,629,630 of ordinary shares at €1.35 (£0.90) per share with institutional investors – raising around €40m (£26.8m) before expenses.
The market capitalisation at the placing price on admission will be €68.6m (£46m).
The fund’s portfolio was recently valued at around €48m (£32m), compared with a total of €35.6m (£23.8m) originally invested to purchase the portfolio less than two years ago.
The directors of the company, which was set up in 2005 after raising €21.2m (£14.2m), said that there is a shortage of Western-standard commercial and residential property in Romania, and that yields are typically 7.5%-9%.
Director Mark Holdsworth said: “Demand for Western standard property has appreciated significantly across all sectors, and we believe that the shortfall in supply will offer continued opportunities for the fund.”
References: EGi News 15/12/06
