Business
Issue of Equity
Issue of Equity.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \n\n20 December 2006\n\n Not for release, publication or distribution in or into the United States,\n Canada, Japan or Australia\n\n Real Estate Investors PLC\n (\"REI\" or the \"Company\")\n\n Completion of £25 million fundraising and Board changes\n\n\nIntroduction\n\nThe Board of Real Estate Investors PLC (AIM: RLE) announces that it has raised\n£25 million through the issue of 250,000,000 ordinary shares of 1p each in the\ncapital of the Company at 10 pence per share (the \"Placing Shares\") to new\ninstitutional and other investors (the \"Placing\"). Of the funds raised, Paul\nBassi has invested £3 million, Marcus Daly has invested £250,000 and John Jack\nhas invested £75,000.\n\nAdditionally, Paul Bassi and Marcus Daly, who were appointed to the Board in\nJuly 2006, have been appointed Chief Executive and Finance Director of REI\nrespectively, effective 1 January 2007.\n\nCommenting on the placing, Peter Lewin, Chairman of REI, stated, \"We are\nextremely pleased by the level of support that we have received from our new\ninvestors. REI is now in a position to capitalise on what we believe are the\nconsiderable opportunities that exist to grow the business significantly and\ndeliver strong returns for all our shareholders. \"\n\nPaul Bassi, Chief Executive designate, commented, \"REI has grown steadily since\nits inception and we believe we are now well placed to drive that growth through\nthe creation of value-enhancing investments. We already have access to an\nextensive network of deal opportunities and, using the Company's increased\nfunds, we aim to build a prudently geared property portfolio of approximately\n£150 million within the next 18 months.\"\n\nBackground to and reasons for the Placing\n\nREI was admitted to trading on AIM in June 2004 under the direction of Peter\nLewin and has steadily built a property portfolio of commercial property assets\nwith an estimated value of approximately £28 million.\n\nThe purpose of the fundraising is to drive a new investment strategy,\nimplemented by an experienced management team led by Paul Bassi, which will\nfocus on central England and Midlands property and which will be aimed at\nproviding high yield and strong capital enhancement. The Company intends to\ncreate investment properties out of vacant or part-vacant, short leased, single,\nmulti-let and distressed asset...