Business
Equity Placement
Equity Placement.
About this update from Kcr Residential Reit Plc
[{"type":"text","content":"\n \nRNS Number : 0637I KCR Residential REIT PLC 19 March 2018 \n\n19 March 2018\nKCR Residential REIT Plc\nEquity placement for investment into its growing residential portfolio\nKCR Residential REIT plc (\"KCR\" or the \"Company\") announces that it has raised new equity for investment to grow its residential property portfolio through the issuance of 4,507,136 ordinary shares (\"Shares\") at £0.70.\nHighlights\n· KCR has raised new equity capital of £1.56 million and capitalised loans of £1.59 million\n· Capital to be deployed to grow PRS (Private Rented Sector) residential portfolio\n· Debt reduced by £1.1 million to 45 per cent of investment property value, with significant reduction in interest cost\n· Net assets increased by £2.66 million\n· KCR believes that there is a strong pricing opportunity in a buyer's market.\nPlacement\nThe placement consists of cash invested into the Company, the novation of the rights to a debt and the conversion of part of the Company's convertible loan note (\"CLN\") into equity.\n· The capital invested, together with pre-agreed debt facilities, will be used for KCR's investment programme: buying blocks of rented studios, one- and two-bedroom apartments at discounts to market value and asset managing them to deliver rental and capital growth. The uncertainty in the market is delivering particularly good acquisition opportunities - it is currently a buyer's market.\n· the conversion of the CLN reduces KCR's overall debt cost significantly and reduces its debt-to-property value to 45 per cent.\nThe combination of investing the new capital into revenue-producing property assets and reducing the overall debt cost moves KCR positively forwards towards its goal of paying dividends.\nThe total new investment in Shares consists of the following subscriptions and conversions:\n· An investment by Energiser Investments Plc (AIM: ENGI) (\"Energiser\") of £1,704,997 through:\no a cash payment of £1,210,897 and\no the novation of the rights ...