Ediston Property Investment Co. Plc, along with its investment manager Ediston Properties Ltd., is in talks to purchase an approximately £146 million portfolio comprising retail warehouse parks.
The U.K.-based company agreed to the heads of terms, and has entered into an exclusivity period and due diligence regarding the portfolio purchase, which could boost the company's real estate holdings to over £315 million, if approved.
Ediston is also holding talks with its advisers, lenders and several large shareholders for the approval and the funding of the deal. The company plans to raise equity to finance the deal, subject to the approval of shareholders.
According to the terms of the agreement, the seller will be paid the material portion of the purchase price in the form of new ordinary shares of Ediston. The remainder of the consideration will be paid via a combination of existing cash resources, debt financing, proceeds from an open offer to existing shareholders, a placing and an offer of subscription.
Ediston's board proposed to raise additional equity share capital through an offering of up to roughly 100 million ordinary shares, proceeds from which are expected to cover the costs of the transaction. A prospectus and a circular will be published "within the next two months," according to a release.
The portfolio is expected to change hands in early December, if the deal becomes unconditional.