Secure Income proposes placing to part fund £436m acquisitions

Secure Income REIT is buying two separate portfolios of leisure assets for £436m (€489.8m) and is proposing a share placing to institutional investors to part fund the acquisitions.

The specialist long-term income UK real estate investment trust is proposing to sell up to 86.4m new shares to raise up to £315.5m.  

The balance of the consideration for the acquisitions will be funded by two new non-recourse debt facilities expected to total £128.7m, it said.

The assets being bought are a portfolio of leisure assets across the UK with a gross cost of £224m and a portfolio of 59 hotels across the UK let to Travelodge at a gross cost of £212m.

Also today, Secure Income, which joined London’s junior investment market AIM in 2014, said its net assets as at 31 December 2017 rose 16.7% to £860.6m from £737.4m a year earlier.

The group’s current real estate assets include visitor attractions and theme parks, hospitals and hotels.

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