Picton plans share placing to raise funds
Picton Property Income is planning to launch a share placing to raise funds for acquisitions and reinvestment in its portfolio, as well as reduce its short-term financing costs.
The proposed placing is priced at 94.5p each, at a discount of 2.4% to the group’s closing share price last night.
Picton has not outlined a target amount but indicated that it needs around £15m for various investments in its portfolio.
Picton Property Income is planning to launch a share placing to raise funds for acquisitions and reinvestment in its portfolio, as well as reduce its short-term financing costs.
The proposed placing is priced at 94.5p each, at a discount of 2.4% to the group’s closing share price last night.
Picton has not outlined a target amount but indicated that it needs around £15m for various investments in its portfolio.
The group has two revolving credit facilities with Santander, of which £26m was drawn on 31 March.
The net proceeds of the placing will also be immediately deployed to reduce the amounts drawn on these facilities.
Michael Morris, chief executive of Picton, said: “The proceeds from the placing will be used to fund important asset management initiatives across the portfolio and, if appropriate, take advantage of acquisition opportunities arising from current market conditions.
“We have already identified more than 20 projects where we believe judicious capital expenditure will achieve higher occupancy, accelerating rental income and capital value growth.
“In the short term, any net proceeds raised will be used to repay our revolving credit facilities and thereby reduce our financing costs.”
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