Regional REIT Ltd shares fell on Thursday, after the commercial property investor announced a £110.5 million fundraising plan.

It will raise the funds through a placing, overseas placing and open offer of 1.11 billion shares at 10p each.

Shares in Regional REIT were down 30% to 15.27 pence each in London on Thursday morning.

The overseas placing concerns existing shareholders in ‘certain restricted jurisdictions’ where an open offer cannot be made.

In addition, it announced a 1 for 10 share consolidation.

The fundraise will enable it to repay a £50 million retail bond.

It added that £26.3 million will go towards trimming debt and remaining £28.4 million will provide it with ‘provide additional flexibility to fund selective capital expenditure on assets’.

Chair Kevin McGrath said: ‘The capital raising, supported by Bridgemere, will enable the company to strengthen significantly Regional REIT’s financial position, reducing indebtedness and provide the company with greater financial flexibility and liquidity headroom.’

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