Steve Morgan, the founder and former boss of housebuilder Redrow, is underwriting a £110 million fundraise and financial reboot at debt-laden office property specialist Regional REIT (LSE:RGL).
Shares in the placing and open offer are being issued at 10p a share, a massive 82% discount to the last published net asset value and 50% below last night’s closing price.
Regional REIT said the funding would enable it to repay a retail bond of £50 million due for redemption soon, clear some bank debt and give it funds for new assets.
Morgan’s vehicle Bridgemere is backing the fundraiser. It was a cornerstone investor in the two funds that were restructured in 2013 and 2014 to form Regional REIT (LSE:RGL).
Shares in the trust tumbled 29% to 15.5p.