Acquisitive property group adding £20m to its war chest

PROPERTY group Real Estate Investors (REI) is raising £20m through a share placing, it announced this morning.

The Birmingham group conditionally placed 40,000,000 new ordinary shares at a price of 50p per share, which will raise net proceeds of £19.47m from institutional and other investors. 
 
It said the proceeds of the placing are to be used to provide additional resources to capitalise on acquisition opportunities in the West Midlands property market.
 
The placing shares represent approximately 35.90% of the company’s enlarged issued share capital.
 
Liberum acted as sole broker and bookrunner and Smith & Williamson as nominated adviser to the placing
 
The placing is conditional on the approval by shareholders in a general meeting.

On Monday REI, whose chief executive is Paul Bassi, announced it had bought Lunn Poly House Parade in Leamington Spa town centre for £2.35m.

Bassi said: “We have a strong acquisition and letting pipeline and we will announce a number of deals in the coming months.”