Sagicor rights issue proceeds for new X Fund subsidiary
Subscriptions to Sagicor Real Estate X Fund's rights offer have reportedly topped the initial 598 million of shares.
As such, the offer was upsized on Monday by more than 149.5 million shares as a result of the demand. The price remains $6.95 per share.
The X Fund offer is non-renounceable, meaning that only existing shareholders can purchase the shares.
At full take-up the rights issue will raise $5.2 billion. The offer will close on September 2.
Sagicor X Fund will invest the proceeds in a new US-based subsidiary called X Fund Properties LLC, which will be used as the vehicle to purchase the DoubleTree Hilton, which is located in proximity to the Universal theme park in Orlando, Florida. It boasts 742 rooms - inclusive of 17 suites - as well as 62,800 square feet of meeting space. Another US$55m of debt financing is being negotiated in the form of a mortgage from an unnamed lender in the United States.
The Jamaican real estate investment company is buying the convention hotel for US$75 million from Blackstone Group.