Business
Proposed portfolio acquisition and capital raising
Proposed portfolio acquisition and capital raising.
About this update from Abrdn Property Income Trust Limited
[{"type":"text","content":"\n \nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE INCLUDING IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR SOUTH AFRICA.\n\nStandard Life Investments Property income Trust Limited(the \"Company\")\n\nProposed portfolio acquisition and capital raising (the \"Proposals\")\n\n28 September 2015\n\nIntroduction and Portfolio\n\nThe Board of the Company announces that it has entered into non-legally binding heads of terms to acquire a portfolio of 22 UK commercial properties (the \"Portfolio\") for a cash consideration of approximately £165 million. The proposed Portfolio is diversified by sector, tenant and region and has a similar income and covenant profile to the Company's existing property portfolio. The Company's investment manager believes that the proposed Portfolio is complementary to the existing portfolio and introduces a number of asset management opportunities that it believes will enhance returns to shareholders. The proposed Portfolio is also expected to enhance the Company's dividend cover.\n\nThe proposed acquisition of the Portfolio is subject to the completion of appropriate due diligence and valuations. It is expected that the Portfolio would be acquired by means of the purchase of all of the units in a Jersey Property Unit Trust which currently holds the Portfolio. \n\nCapital raising\n\nThe acquisition is also subject to the Company raising additional equity and debt capital which, together with the Company's expected available cash reserves, would be used to fund the cash consideration and expenses of the acquisition. The Board would intend to put in place a new debt facility for up to £75 million in aggregate and has commenced discussions with potential lenders in respect of these facilities. The Board would also intend to undertake a placing of new ordinary shares at a premium to the net asset value per share to raise up to £100 million to fund the balance of the consideration. \n\nConsultation with Shareholders\n\nTo date ...