Corporate lawyers at Walker Morris have advised commercial real estate investment company Custodian REIT Plc on its proposed fundraising to raise gross proceeds of up to £50m, with the ability to increase this to up to £75m.
The funds will be raised through the issue of up to 71,976,967 new ordinary shares by way of a placing, an open offer and an offer for subscription, all at 104.2 pence per ordinary share. In addition, the company is facilitating potential issues of up to 100 million further ordinary shares pursuant to a rolling 12-month placing programme.
The funds will be used to capitalise on current opportunities to invest in commercial real estate properties in the UK to add to its existing portfolio of 101 assets. Custodian recently entered into non-legally binding heads of terms to acquire a portfolio of 11 UK commercial properties for an aggregate consideration of approximately £69.4m. In addition, the company has committed pipeline investments and other opportunities.
Richard Naish (partner), Jon Wharam and James Goose from the Walker Morris corporate group advised Custodian.
