The UNITE Group plc today announces a proposed placing of up to 16.0 million new ordinary shares of 25 pence each representing approximately 9.99% of the Company's current issued ordinary share capital.
The proposed placing of up to 16 million new Ordinary Shares aims to raise gross proceeds of approximately £50 million. Proceeds will be used to fund a highly targeted regional development program of approximately 2,500 beds at an estimated total development cost of approximately £125 million, which is expected to offer compelling investment returns.
The capital will start being deployed in 2013, fully allocated by end of 2014 and fully invested by end of 2016, allowing the company to pursue this opportunity without increasing leverage.
The proposed development program is expected to be NAV enhancing from 2014 onwards and EPS enhancing from 2015 onwards, supporting the Company's objective of growing recurring earnings.