Germany's Hamborner to raise €142m via new capital increase

German listed property firm Hamborner REIT is to raise around €142 mln through the issue of 16.6 million new shares at a price of €8.50 a share.

It is the second capital increase to be carried out by the Duisburg-based company this year. In February, Hamborner increased its capital by 10% through the issue of 4.5 million new shares worth a total €40.9 mln.

The shares were fully subscribed in an off-market deal by RAG-Stiftung, a foundation set up to ensure that the RAG corporation can discontinue subsidised coal mining in a socially acceptable manner in the Ruhr Valley.

The company said it intends to use the proceeds from the new offering mainly to finance the acquisitions of additional properties. Existing shareholders will be offered subscription rights for the new shares and the company's largest shareholder, RAG-Stiftung, has already agreed to exercise all its subscription rights.

Any new shares not taken up by existing shareholders may, following expiry of the subscription period, be offered to qualified investors via a private placement, Hamborner said.

Joh. Berenberg, Gossler & Co. KG is acting as sole global coordinator and together with Kempen & Co and Bankhaus Lampe KG acting as joint bookrunners.