Shaftesbury is raising £36.5m by a three for eight rights issue to help pay for the Carnaby Street Estate, W1, which it is buying from Wereldhave for £90m.
The London retail and restaurant specialist – which has unveiled annual pre-tax profits of £3.9m – will finance the balance of the purchase price through bank borrowing.
Chairman Jonathan Lane says he intends to attract new retailers, restauranteurs and leisure operators to Carnaby Street. Office space – currently 45% of the estate – will be cut back.
Profit before tax in the12 months to the end of September is up 17% against £3.3m last time. DTZ and Spiers Gumley valued Shaftesbury’s portfolio at £150.2m. Gearing is at 77% following the September acquisition of the Trocadero Island Site, W1, for £31m.
The latest rights issue has been fully underwritten by Kleinwort Benson.
EGi News 12/12/1996
