LONDON (ShareCast) - AIM-listed Palace Capital has agreed to acquire Property Investment Holdings for £3.65m to expand its property portfolio.

The real estate group, which currently includes 17 properties worth £32.02m, generates annual income of around £2.5m.

The group said it plans to raise around £20m, which will be used to finance part of the acquisition. Market capitalisation on completion of the acquisition will be £62.5m at the issue price.

Managing director Neil Sinclair said: "The portfolio of properties is in good locations, predominantly in the South East. The board is confident that there are many opportunities to unlock significant value from these properties that will benefit our shareholders."

The firm also announced on Wednesday that is has opened a new banking facility with NatWest worth £16m.

As of 09:05 the share price had dropped 1.5% to 320p.

WS

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