Redefine raises €66.4m to fund expansion and cut debt

UK REIT Redefine International has raised £54.7 mln (€66.4 mln) from a new share issue to finance new acquisitions and asset management opportunities as well as reduce its gearing.

The company, which has a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, issued over 115 million new ordinary shares at a price of 47.5 pence per share.

Redefine said it 'sees good opportunities in its preferred geographies of the UK and Germany through a combination of new acquisitions, efficient portfolio recycling and asset management. An appropriate balance sheet structure, as facilitated by the placing, would provide a strong platform for this’.

Redefine CEO Mike Watters commented: 'The success of this placing ensures that we are well placed to continue to deliver our strategy for growth. Against a backdrop of improving markets and a benign interest rate environment, we see a growing number of opportunities for us to create and enhance sustainable value through selective acquisitions, accretive asset management opportunities and the early refinancing of our facilities.'

Redefine plans to use part of the proceeds from the issue to repay a £20 mln working capital debt facility in the short term, saving the company an interest charge of around 6% per annum.

The £16.8 mln proceeds from the previous placement in August 2013 were used to help finance the acquisitions of the Weston Favell shopping centre for £84 mln and CMC portfolio for €189 mln at yields of 7.2% and 5.5% respectively. The company has since disposed of £28.4 mln of non-core assets.