Herbert Smith Freehills advises BofA Securities, Deutsche Numis and J.P. Morgan Cazenove on £350 million rights issue by Great Portland Estates plc

Leading international law firm Herbert Smith Freehills is advising BofA Securities, Deutsche Numis and J.P. Morgan Cazenove on a fully underwritten 3 for 5 rights issue by Great Portland Estates plc (GPE) to raise gross proceeds of approximately £350 million.

GPE is a FTSE 250 listed real estate investment trust (REIT), engaging in property investment and development focusing on properties in prime locations in central London.

Under the terms of the rights issue, GPE will raise approximately £350 million (£336 million net of expenses) through the issue of 152,320,747 new ordinary shares at a price of 230 pence each.

The rights issue will allow GPE to take advantage of the attractive new acquisition and development opportunities emerging in central London commercial real estate and deliver attractive and accretive shareholder returns.

The rights issue is underwritten by BofA Securities, Deutsche Numis and J.P. Morgan Cazenove as Joint Global Coordinators and Joint Bookrunners, and Santander as Co-lead Manager. Lazard is acting as Financial Advisor to GPE. BofA Securities is acting as Sole Sponsor to GPE.

The Herbert Smith Freehills team is led by the co-heads of Equity Corporate Finance Michael Jacobs and Tom O’Neill, and of counsel Thomas Vaughan, supported by associates Gaelen Perrone, Cassie Ayre, and Jhanelle Bisasor.

Michael Jacobs commented: “We are very pleased to advise the banks on this significant rights issue, a transaction which showcases our expertise in UK real estate ECM. We wish GPE all the best in the deployment of the new capital and the growth of the business.”