Dawnay, Day Treveria, the listed property investment company focused on the German market, has announced it is to raise EUR 250-300 mln through a placing of approximately 205 million ordinary shares to institutional investors to fund additional acquisitions over the next 12 months. The placing price for the new shares will be announced on or around 17 November and dealing in these shares should begin by the end of the month.
Dawnay, Day Treveria, the listed property investment company focused on the German market, has announced it is to raise EUR 250-300 mln through a placing of approximately 205 million ordinary shares to institutional investors to fund additional acquisitions over the next 12 months. The placing price for the new shares will be announced on or around 17 November and dealing in these shares should begin by the end of the month.
Treveria said it has made 'excellent progress' towards full investment of EUR 2.3 billion, with its total portfolio currently at EUR 1.95 billion, including properties which are notarised or in solicitors' hands. 'Treveria believes that there are significant further acquisition opportunities which can generate attractive returns for Treveria's shareholders and there continues to be a positive yield spread in the German marketplace. Treveria believes that the introduction of German REITs (G-REITs), which is expected in 2007, will bring increased liquidity for retail properties,' the company said in a statement.
The group's asset manager, Dawnay, Day Treveria Real Estate Asset Management, has identified a further pipeline of transactions in excess of EUR 1.2 billion and Treveria intends to use the net proceeds of the placing, together with further debt facilities, for its new acquisitions. It also announced that it is increasing its future target dividend payout level to 90% of recurring net income from 85% as set at the time of the IPO.
