Regional REIT launches £110m equity raise

Regional REIT has launched a £110.5m equity raise. The deal will let the company repay its £50m retail bond as well as reduce bank borrowing and cut its LTV to 56.8%. Chairman Kevin McGrath said: “The board believes this capital raising is the best available solution for shareholders. The capital raising, supported by Bridgemere, will enable the company to strengthen significantly Regional REIT’s financial position, reducing indebtedness and provide the company with greater financial flexibility and liquidity headroom.” Stephen Inglis, chief executive at asset manager London & Scottish Property Investment Management, added: “Since the Covid-19 pandemic the company has been operating in a challenging environment, resulting in the LTV increasing to 56.8% against a target of less than 40%. “The fully underwritten and fully pre-emptive capital raising provides the best long-term solution to the upcoming retail bond refinancing, will put the company on a sound footing reducing the LTV to approximately 40% and provide the flexibility to fund capital expenditure on assets to maximise value and income for shareholders over the long term.”