Ediston Property Investment Company (EPIC) said on Tuesday that it is set to acquire four retail warehouse parks in the UK from Stadium Group, for £144 mln (€162 mln).
EPIC has entered into a conditional agreement to acquire the parks, subject to a successful capital raise and to shareholder approval.
The acquisition will be funded through an open share issue offer to existing shareholders, and the issue of new shares to the vendor. The acquisition is conditional on proceeds of at least £37 mln being raised through these share issues.
EPIC will also use existing cash resources and a new 10-year term loan facility of around £54 mln, arranged through Aviva Commercial Finance.
According to EPIC, retail parks make up part of the company’s key investment strategy, as there is currently low supply, strong demand from tenants, while sites also present development potential.
This acquisition will bring EPIC’s total portfolio to around £317 mln.
William Hill, chairman of EPIC, commented: 'I am delighted with the progress of this property transaction and consider these proposals to be an important next step in the development of the company. I am also encouraged with the discussions we have had to date with both our existing shareholders and potential new investors in relation to the equity raising to support these proposals.'
The acquisition agreement will terminate if the conditions are not met over the next month.
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