- Lar España Real Estate Socimi´s Board of Directors has decided to approve a rights issue transaction of EUR 147.1 mm
- The Socimi has identified a very visible pipeline of assets that amounts to EUR 838 mm and expects to carry out acquisitions in the coming months.
- This would be the second capital increase carried out by the Socimi during the past year, consolidating the active investment strategy and the financial strength.
Lar España Real Estate Socimi (LRE), the listed real estate investment company, has announced its intention to carry out a share capital increase of EUR 147.1 million, following the agreement reached yesterday by the Board of Directors.
The company will issue 30 million new shares with a subscription price of 4.92 euros.
The transaction has been structured as a rights issue and hence current shareholders could exercise its pre-emption rights in order to avoid the dilution of their current stake. As in the last capital increase, a solid base of existing shareholders has confirmed their intention to subscribing their pro-rata rights. J.P. Morgan and Morgan Stanley are acting as global coordinators and, along with Fidentiis, as bookrunners underwriting the entire size of the transaction, ensuring proceeds raised.
José Luis del Valle, chairman of Lar España Real Estate, said: “The capital increase that we announce today, under the current market circumstances, proves the strength and appeal of our Socimi and shows the company’s ability to successfully use the capital markets."
“We have decided - continued Del Valle - to carry out this capital increase in order to take advantage of very interesting investment opportunities that will generate the added value that our investors expect from us."
The Socimi has already identified a range of assets, assuring that the funds will be used shortly. José Luis del Valle said that "the nearly 150 million that we expect to raise will be used in the coming months, with almost all certainty, before the end of this year."
"We are continuing to grow in size, as we will clearly exceed one billion euros in investments, whilst maintaining the high quality standards of all the assets in our portfolio", he added.
As detailed in the prospectus, the Socimi has identified market opportunities valued at EUR 838 million. Approximately 81% of the pipeline identified corresponds to retail facilities, 14% to office properties and the remaining 5% belong to other categories.