Warehouse REIT has announced it will raise £100m to bring forward an identified pipeline of opportunities and grow its portfolio.
It has identified an increase in acquisition opportunities of £256m, with a target investment yield of 7%, of which £41.3m are in exclusive or final negotiations.
The REIT will issue 97m shares, at 103p per share, targeting gross proceeds of £100m. The issue will comprise a placing, open offer and offer for subscription.
The board has the right to increase the size of the issue by 25m shares, or £25.7m.
The price represents a discount of 2.6% to the NAV per share of 105.7p at 30 September 2018.
The REIT has deployed £150m of equity capital since its IPO in September 2017. On 5 March 2019, it announced plans to raise further funds.
Neil Kirton, chairman of Warehouse REIT, said: “With robust and growing income streams from a focused investment into UK multi-let warehouse properties, the next phase for the company is to scale the portfolio as it continues to both source and attract compelling deal flow within the asset class. Having carefully considered all funding options in order to grow, we believe that this potential share issue would be in the best interests of Shareholders and the success of the company as a whole.”
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