Redefine International announces placing to raise £100m

UK real estate investment trust Redefine International announced a placing of up to 375m shares to raise gross proceeds of over £100m to finance the second tranche of its acquisition of the AUK Portfolio announced back in September.

Redefine said in January that the second tranche of the acquisition comprises nine properties, at a reduced price of £201.7m, or £210.2m including costs, following the sale of 16 Grosvenor Street, London in December 2015 which generated a profit of £3m pre completion.

The company said it may decide to up the size of the placing to £150m if there is sufficient demand.

It also said any excess proceeds up to £50m raised above the £100m minimum required to finance the deal would be used, among other things, to provide capital for further disciplined asset management opportunities within the group's existing portfolio, as well as potential new investment opportunities.

It would also be used to support the refinancing and restructuring of the group's existing facilities at lower leverage levels.

At 0821 GMT, Redefine shares were up 1.7% to 43.16p.