Redefine International announces potential share placing

Redefine International announced a potential share placing to raise in excess of £100m to finance the second tranche of its acquisition of the AUK Portfolio announced back in September.

The property investor said the second tranche of the acquisition now 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.

Redefine said completion of the placing and the acquisition would create a portfolio valued at around £1.5bn, with a pro forma gross rental income of approximately £103m.

Chief executive Mike Watters said: "The completion of the AUK Portfolio will represent another key milestone for Redefine International. Over the last five years we have overseen the successful transformation of the company's corporate structure and asset base, significantly enhancing shareholder returns.”

"Having carefully considered all funding options, we believe that this potential placing would be in the best interests of shareholders and the growth of the business as a whole."

If the placing goes ahead and there is sufficient demand, Redefine may increase the size of the placing up to a maximum of £150m, the company said, although it gave no further details on the placing.

At 1115 GMT, Redefine shares were flat at 46.80p.