FdM to raise EUR 125m via capital increase

French real estate investment trust Foncière des Murs (FdM) has announced plans to raise around EUR 125 mln of fresh equity with a capital increase supported by its main shareholder, listed office property group Foncière des Régions.

The operation, conditional on approval from the French stock market authority, is aimed at financing its growth strategy.

'The main shareholders of Foncière des Murs, which hold collectively 73.96% of the share capital, have indicated their intentito participate in the issue proportionally to their interest in the share capital,' FdM said on Thursday.

Foncière des Régions also indicated its intention to subscribe to any new shares which have not been taken up by the end of the offer period.

FdM was able to decrease its leverage from 54.3% at year-end 2010 to 48.4% at year-end 2011, largely through property sales. The company owns a portfolio valued at nearly EUR 3 bn, boasting an occupancy rate of 100%.

EPRA Net Asset Value amounted to EUR1.5 bn or EUR 27 a share at end 2011, up 8% on 2010's figure of EUR1.4 bn or EUR25 a share. The company is proposing to pay a full-year dividend of EUR 1.50 per share.