City Lofts raises 2.5m with new shares issue

City Lofts is placing 3,125,000 new shares on the stock exchange to raise £2.5m to fund its new developments. The new shares will cost 80p and admission of the new shares to the Alternative Investment Market is expected to take place tomorrow (Thursday).

Stuart Wright, City Lofts group chief executive, said: “It will help to improve liquidity in our shares, goes some way to satisfying the increasing demand for shares from existing and new shareholders and provides the company with additional working capital to help finance its expanding development pipeline.

The firm also announced that it has agreed to acquire the outstanding 49% equity interests of Lehman Brothers in four joint ventures for £2.45m. The joint ventures are City Lofts Argus Building, Drysdale Street, Piccadilly and St Ann’s Quay.

Wright said: “This enables us to simplify the internal group structure which will allow us to maximise the tax benefits of such a group structure.”