Tritax Big BoxREIT Plc is looking to raise £150 million through an offering of upto 113,636,364 new ordinary shares priced at 132 pence apiece.
The company expects to use the net proceeds from theissuance to buy investment assets in the U.K. Its manager is already in talksfor the properties, which are expected to be value accretive in the medium term.
The company said it is in advanced talks for two propertiesin the Midlands and one in the South East. The assets have a combined value ofapproximately £175 million and a total combined space of about 1,650,000 squarefeet. There is no certainty that the acquisitions will move forward, Tritaxnoted.
The issue price for the shares represents a 7.1% discount toTritax's closing price of 143.6 pence apiece as at Sept. 27, and a 4.9% premiumto its per-share EPRA NAV, as at June 30.
Up to 76,364,364 new shares will be made available toqualifying shareholders at the rate of 1 ordinary share for every 11 existing sharesheld on the record date, and the balance of new shares will be made availablefor subscription.
The placing, open offer and offer for subscription, which isnot underwritten, is subject to approval at the company's Oct. 17 generalmeeting. The admission of the shares is expected by the start of market hoursOct. 18.