British Land Co. the company of UK that is considered as the second largest investment trust in global real estate scenario, is planning to go for a rise of around 500 million pounds, which is equivalent to $745 million, in a sale of share to acquisition and purpose of development. It is witnessed that the stock value has dropped the maximum within a year.
The London established company revealed in a statement that they plan to sell new shares worth 89.7 million, which is almost about 10 percent of the company’s capital share. It is also announced by REIT that there is proposal of sale for the Ropemaker Place which is a building for offices at London, costing around 472 million pounds.
It is proposed that the money that will be raised through the sale of shares are to be utilized in paying current transactions and deals that are in pipeline with British Land’s negotiation and purchase plans. The organization hopes to take benefit of the investment scope and opportunities after the withdrawal of small competitors from the property and economic market of UK, as stated by a statement released today.
The Ropemaker Place of the London City, which is scheduled to be sold, is expected to be purchased by a team of French and far Eastern traders who represent the Investment group of AXA Real estate Investment Managers. The offices of the building are completely occupied and have a lease agreement of average 14 years, including tenants such as Bank of Tokyo-Mitsubishi, Macquarie Group, Liberum Capital Ltd. etc.
In the trading scenario of London, British Land has witnessed a drop by 3.5 percent which is considered as the biggest one since the year March 2012. The value of the stock shares went for a drop of 2.9 percent down against 563.5 pence, thus giving the organization a market assessment of 5 billion pounds. In the last 12 months, the shares of British Land have gained 14 percent in average as per reports and reviews.
The company declares that the sale of the Ropemaker Place has association with several investments of funds and opportunities which includes 213 million pounds of current acquisition, added with 150 million pounds for planned achievement. The organization also has strategies to maintain a balance between its portfolio and recycle of capital assets in the City and its West End.
The company, British Land, adds that the position of placing is estimated to improve the earnings growth and return value, on an annual basis of 12 months in regard to investment progress.
In this project, Morgan Stanley along with UBS is acting as combined corporate brokers whereas Goldman Sachs is the bookrunner in a joint placing position.