LondonMetric's €114m equity raise to target opportunities in Covid-19 times

UK industrial REIT LondonMetric has announced plans for a £100 mln (€114 mln) equity raise to pursue deal opportunities created by the Covid-19 crisis. 

The company will issue 56 million new ordinary shares, equivalent to 6.7% of its issued share capital.

'These uncertain times are starting to give rise to quality investment opportunities that are seldom available in a normalised market,' said the firm's chief executive, Andrew Jones.

'We are continuing to operate against an unprecedented economic and social backdrop which is accelerating a number of trends that were already disrupting established practices,' Jones added.

Around £60 mln of the funds raised from the share placing will be spent on five assets which have already been identified, Jones said. This long income portfolio includes an urban logistics asset in London, plus a sale and leaseback portfolio in the capital.

'The structural trends towards online and convenience that have underpinned our conviction calls into logistics and long income are set to accelerate, as many temporary shopping behaviours become more permanent with changes that were expected to take years now occurring within months,' Jones said.

'Against this backdrop, our portfolio remains well positioned and has continued to perform strongly as borne out by our high rent collection and continued dividend payments,' he added.

LondonMetric currently holds £2.3bn of properties with some 35% in urban logistics, 34% in regional and big-box sites and 24% in long income assets.

Its recent results showed earnings per share rose by 6% to 9.3p, with net rental income rising by 24% to £116 mln, for the year to March.


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