Welcome to the new morningstar.co.uk! Learn more about the changes and how our new features help your investing success.

LXi REIT Raises GBP200 Million In Oversubscribed Share Issue (ALLISS)

(Alliance News) - LXi REIT PLC said Thursday it has raised around GBP200 million through a ...

Alliance News 13 June, 2019 | 11:17AM
Email Form

(Alliance News) - LXi REIT PLC said Thursday it has raised around GBP200 million through a "significantly oversubscribed" share issue, double from the initial fundraising target.

Through a placing, subscription, open offer and intermediaries offer, the long income real estate investment trust issued 169.1 million shares at a price of 118 pence each.

Shares in LXi REIT were down 0.3% at 125.80 pence on Thursday.

Under the placing, 79.9 million shares were issued to raise GBP94.3 million, while the subscription saw 18.5 million shares issued, raising GBP21.9 million in proceeds.

The intermediaries offer saw 5.7 million new shares issued, raising GBP6.8 million.

Finally, the open offer for qualifying shareholders raised GBP76.6 million, by the issue of 64.9 million shares.

The open offer was conducted on the basis of six new share for each 25 existing shares.

Proceeds from the fundraising will go towards the acquisition of a pipeline of potential assets, "which meets the company's investment objective and investment policy".

Peel Hunt acted as broker, bookrunner and intermediaries offer adviser.

The trust first announced its intent to raise funds in May, initially targeting a raise of GBP100 million through the issue of 84.6 million shares.

"We are pleased by the strong response to this issue and, on behalf of the board and investment advisor, I would like to welcome a range of new investors and thank our existing shareholders for their continuing support, helping the company to complete successfully this GBP200 million capital raise," said Chair Stephen Hubbard.

"We look forward to deploying the capital rapidly but carefully in our significant identified pipeline of accretive, long-let and index-linked assets, which are expected to deliver further value for our shareholders," Hubbard added.

LXi REIT now has 521.4 million shares issued overall.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
LXI REIT Ord 128.60 GBX -1.23 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites