The £843m Glanmore Property Fund has today rejected the proposed share offer made by AIM-listed Ciref last Thursday.

Ciref had proposed an offer of 25 Ciref shares for every one Glanmore share as well as recapitalising the fund with £120m from a convertible share offer which would reduce the fund’s gearing to 63%.

The proposed offer valued each Glanmore share at £11 and the whole fund at £276m.

However, Glanmore, which is attempting to raise £95m from its private investor base, said this afternoon and said its capital raising would go ahead as planned on 27 July.

At its July valuation, it had £194.2m of equity compared to £649m of debt from lenders Royal Bank of Scotland and Canada Life – both of which have waived loan covenant breaches on the condition it raises new equity.

The open-ended fund has suffered from its high gearing combined with pressure from redemptions.

Deutsche Bank-owned Tilney Asset Management, has postponed redemptions for over a year and half already, and obtained the power to trap investors for up to four more years.

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