Belgian REIT Montea has successfully completed a capital increase through an accelerated bookbuilding procedure on Euronext Brussels, raising gross proceeds of €126 mln.
The capital increase was conducted through a private placement of shares with institutional investors of 1,802,521 new shares, priced at €69.90 per share.
Montea will utilize the net proceeds to develop 1 million m2 of its existing land bank. This development will result in 600,000 m2 of new-build projects with an average net initial yield of 7.0%, compared to a controlled cost of debt of 2.5%. Already, 52% of these projects have been pre-let.
In addition to the book value of these building sites, which currently stands at €150 mln, Montea plans to invest an additional €400 mln to complete the rollout. The majority of this investment is expected to occur in 2024, with all projects anticipated to be finished before the end of 2025.
Furthermore, Montea will allocate the net proceeds from the capital increase to pursue potential market opportunities across its four operating countries. These opportunities, alongside the acquisition of additional land positions, will encompass in-house developments, acquisitions of standing assets, and sale-and-lease-back transactions, all targeting an average yield of 7.0%.
Els Vervaecke, CFO of Montea, stated: ‘We are extremely pleased with the success of this capital increase, driven by our strong growth story. Thanks to this transaction, we are better equipped than ever to execute our ambitious growth plans. We thank all existing and new shareholders for their continued trust in Montea.’
KBC Securities NV and Van Lanschot Kempen N.V. are acting as joint global coordinators and ABN AMRO Bank N.V., acting in cooperation with ODDO BHFS SCA, Belfius Bank NV, acting in cooperation with Kepler Cheuvreux S.A., and Degroof Petercam NV are acting as joint bookrunners.
Montea is the third Belgian-listed real estate company to complete a capital increase in recent weeks, following Cofinimmo and Shurgard.
Montea invests in and develops high-quality, well-located logistics properties in Belgium, the Netherlands, France, and Germany. The company's property portfolio totals over 1.92 million m2 spread across 94 locations.