Corporate Group advises Custodian REIT Plc on a fundraising to raise up to £75 million

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05/11/2015

Corporate lawyers at Walker Morris have advised the commercial real estate investment company, Custodian REIT Plc, on its proposed fundraising to raise gross proceeds of up to £50 million, with the ability to increase this to up to £75 million.

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 £69.4 million.  In addition, the Company has committed pipeline investments and other opportunities.

Richard Naish (partner) from the Walker Morris Corporate Group advised Custodian.

Richard Naish said:

“As a firm we have had an extremely busy year in terms of public market deals which is testament to both changing market conditions and our reputation in this specialist field.  This latest deal provides Custodian with a solid platform to expand their property portfolio and achieve their growth ambitions.”

Numis Securities acted as sponsor and broker to Custodian REIT Plc, advised by Travers Smith (Aaron Stocks).

Earlier this week, Yorkshire Business Insider announced that the Walker Morris Corporate Group were shortlisted for the Dealmakers ‘Corporate Law Firm of the Year’ Award.  In addition, the Team advised on a number of deals that have been shortlisted for Dealmaker Awards including two ‘AIM Deals of the Year’, one ‘Deal of the Year (below £25 million)‘, and two ‘Deals of the Year (£25m and above)’.

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