The Westbury Property split-capital investment trust is looking to raise further capital. The trust...
The Westbury Property split-capital investment trust is looking to raise further capital.
The trust board is proposing to launch a new class of ordinary shares, with existing income or capital shareholders being offered the chance to roll over into new shares or maintain their current positions.
Currently, packaged units in the £34.4m trust, which has investments in retail and industrial warehouse properties, are comprised of two income shares and one capital share.
The aim is for the new ordinary shares to reflect that composition.
Trust manager Richard Burrell of Berrington Fund Management said preliminary consultation with larger shareholders has met with favourable results.
The aim is to publish a prospectus by 5 November to provide full details of the proposed restructuring, set out the amount of new equity to be issued and determine the procedure for obtaining the new share class.
Burrell said: "Since we launched in April 2002, we have concentrated on doing exactly what we said we would at the time, but a lot of investors have complained about the difficulty of increasing their holdings in the fund."
The trust has just exchanged contracts on the joint purchase of a 5.3 acre development site in North London and has a number of potential purchases in the due diligence phase.
Burrell also confirmed the proposed influx of capital would not alter the portfolio's investment approach.
The trust has announced an increase in NAV due to capital shareholders of 10% since interim results for the six months to 30 June this year were announced.
A 2p per share quarterly dividend for income shareholders has been approved by the board.