Regional REIT has successfully raised approximately £110.5 mln (€131.1 mln) through a fully underwritten share placement and open offer.
Bridgemere Investments Limited, part of the Bridgemere group founded by Steve Morgan CBE, acted as underwriter for the entire capital raising.
These funds will be used to repay the retail bond and reduce the company’s debt level, lowering the loan-to-value ratio from 56.8% to 40.6%.
Following the completion of the capital raising, Regional REIT will consolidate its shares, with ten existing shares exchanged for one new share.
Stephen Inglis, CEO of London & Scottish Property Investment Management Limited, the asset manager, commented: ‘This successful capital raising means we can not only repay the £50 mln retail bond, but it significantly strengthens Regional REIT’s financial position, reducing indebtedness while providing the company with greater financial flexibility to fund capital expenditure on assets to maximize value and income for shareholders over the long term.’
Steve Morgan CBE, founder of Bridgemere Investments Limited, commented: ‘Bridgemere is very pleased to have supported Regional REIT in its capital raising and to be a new significant shareholder of the company. We look forward to working with the asset manager as Regional REIT looks to return to growth.’
Upon completion of the share issue, Bridgemere will hold an 18.7% stake in the company, owning a total of 303,070,408 shares.
Regional REIT’s portfolio consists of 135 commercial properties, mainly offices and light industrial units, across the UK worth around £688.2 mln (€816.6 mln).
