Friday 17 January, 2020

KPREIT poised for more growth after VM raises $2b in rights issue

“The environment is ripe and ready for investment – and it shows in the increase in developments across Jamaica in real estate,” said Rezworth Burchenson, VMWM CEO.

“The environment is ripe and ready for investment – and it shows in the increase in developments across Jamaica in real estate,” said Rezworth Burchenson, VMWM CEO.

Victoria Mutual Wealth Management (VMWM) advised, arranged and assisted Kingston Properties Limited (KPREIT) with its corporate financing needs through a renounceable rights issue of its ordinary shares.

Thanks to VMWM, KPREIT raised over $2 billion to improve its ability to finance further acquisitions in Jamaica and the wider Caribbean, which will likely increase the return on equity for shareholders.

Through the rights issue KPREIT issued 355,871,765 renounceable new shares to existing shareholders at a subscription price of $5.62 at a rate of 1.10573.

New shares for every existing share held as at the record date of November 8, 2019.

The offer opened on November 18 and closed successfully on November 29, 2019, with a dollar value of over $2 billion – more than KPREIT’s desired target capital raise.

A renounceable rights issue means that an existing shareholder may renounce all or part of their allotment to an individual or entity who need not be an existing shareholder.

“We are very pleased to have assisted KPREIT in accelerating their growth agenda, which is the centre of our strategy and commitment when we went public a few year ago. This injection of capital for KPREIT is typical of what we do at VMIL, allowing businesses to grow locally and internationally. I’m pleased with our Capital Markets Unit for the timely execution of this Billion dollar transaction, which more importantly was underwritten by VM Wealth” said Rezworth Burchenson, VMWM CEO.

KPREIT embarked upon the rights issue to enhance its capital base as it seeks to achieve its strategic objectives of expanding their reach.

Its experience in these markets and investing in these asset sub-classes will provide the optimal medium to long term risk-adjusted returns.

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