UK listed self-storage company, Big Yellow Group, of which BlackRock owns more than 10%, has issued new ordinary shares worth £110 mln (€127 mln) to fund its pipeline of new developments.
In a London Stock Exchange announcement, the company reported the price represented a 2.88% discount to the closing share price of 973 pence on 10 October.
The move follows a key event in September when the company managed to refinance its £120 mln debt facility with M&G Investments for a seven-year term, with the new loan expiring in September 2029. The pricing of that new loan was reflective of 'sustainability investments' made by the company over the past few years, as well as its planned investment in solar over the coming years.
The FTSE 250-listed group added that the margin on the facility had been reduced by 20 basis points from its expiring facility, reflective of improved portfolio performance.
For the most recent capital raise, Barclays Bank and JP Morgan advised the property company.
BlackRock subscribed to 1,600,000 new shares, amounting to a total of £15.1 mln – more than 10% of the total rasied.
Big Yellow is using the proceeds to build out its existing pipeline of properties.
It will press on with the construction of an initial six sites, including Farnham Road, Slough, Wapping, Wembley, Queensbury, Staines and Slough Bath Road in England, all of which have planning consent at an incremental cost of £90 mln.
