Picton Property Income is looking to raise up to £11m through its second share placing in recent months.
The listed property firm is issuing up to 22.2m new shares representing 6.2% of the company’s existing share capital.
The shares will be issued at a premium to the most recent net asset value of 50.4p a share so will be accretive to existing shareholders.
In September, Picton raised £6.3m at a 4.9% premium to the preceding NAV and subsequently invested £10.5m in two income-producing assets.
Picton said the proceeds “will be used for identified capital projects within the existing portfolio, alongside further net investment into the property market where attractive investment opportunities can be identified”.
It added: “More generally, the company is looking to recycle capital within its portfolio and invest into larger lot sized opportunities and the proceeds of the placing will be used to such effect.”
Picton currently owns 61 assets with more than 370 occupiers. Some 70% of its portfolio is in the industrial and office sectors and 58% in the London and South East.
The current dividend yield on the company’s shares based on the closing price as at 26 November 2013 is 5.5%.
JP Morgan Cazenove and Oriel Securities have been appointed as joint bookrunners in respect of the placing, which is not being underwritten.
bridget.o’connell@estatesgazette.com
