McKay Securities are planning to raise £86.7m through a share placing to capitalise on the recovering South East and London markets.
The REIT has announced the open offer of 45.8m new shares at an offer price of 189p a share – a 1% discount to its closing price on 28 January.
Institutional investors have already taken up shares reflecting around £26.7m, with the reminder conditionally placed with other new investors.
The London and South East-focused REIT said the new capital will accelerate the delivery of returns from its current and near-term portfolio projects.
It added that the proceeds would also be used to fund future acquisitions with future income and capital gains potential, while increasing the size of its portfolio would create inherent diversification advantages.
The additional funds would also promote liquidity in the group’s shares, and reduce its gearing to a level which would improve its financial covenant terms.
The announcement comes as the firm reveals a 1.4% rise in the value of its portfolio to £236.3m in a trading update.
In the period from 1 October to 27 January it completed the acquisition of 1 Crown Square in Woking for £6m.
It completed eight new lettings with a combined rent of £500,000 pa and maintained its portfolio occupancy at 89% from 30 September.
McKay is currently onsite at three refurbishment projects.
bridget.oconnell@estatesgazete.com
