Business
Placing to raise up to ?15 million
Placing to raise up to ?15 million.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \nRNS Number : 2165J Real Estate Investors PLC 28 June 2011 \n \n\n28 June 2011\nREAL ESTATE INVESTORS PLC\n(\"REI\" or the \"Company\" or the \"Group\")\n \nPlacing to raise up to £15 million\n \nReal Estate Investors plc (AIM:RLE), the West Midlands based property group, announces that it proposes to raise gross proceeds of up to £15 million (approximately £14.7 million net of expenses) through the issue of up to 272,727,277 New Ordinary Shares by way of a Placing at a price of 5.5p per New Ordinary Share. The Placing is being carried out to allow REI to capitalise on opportunities to acquire prime and quality secondary properties in the West Midlands in a capital starved market.\n \nLiberum Capital Limited is acting as Broker and Smith & Williamson as Nominated Adviser in relation to the Placing.\n \nSummary:\n \n\n\n\n\n- Under the Placing, REI intends to place up to 272,727,277 New Ordinary Shares, representing a 55% increase in the number of Ordinary Shares in issue.\n\n\n\n\n- The Placing price is 5.5p, representing a 4.3% discount to the closing mid market price of 5.75p per Ordinary Share prevailing on the AIM market on 27 June 2011 (the last practicable date prior to the issue of this announcement).\n\n\n\n\n- The Company is a West Midlands focussed property investment company specialising in investment in offices, shops, residential properties and land, in lot sizes between £1 million and £10 million, and through its in depth knowledge of the local occupier market via its agency associations with CP Bigwood Chartered Surveyors and The Bond Wolfe Partnership, is ideally positioned to become a cash purchaser of acquisition opportunities emerging from a range of sources.\n\n\n\n\n- The Directors of REI consider that the Company's existing business model is suited to conversion to a REIT structure and the Board will continue to consider the appropriateness of a conversion to a REIT structure in future.\n\n\n\n\n- The Placing is being carried out to provide REI with additional resources to capitalise on acquisition opportunities currently existing in the West Midlands from motivated vendors. The Company has been in discussions in re...