EPIC has entered into a conditional agreement to acquire the parks, subject to a successful capital raise and to shareholder approval.
The acquisition will be funded through an open share issue offer to existing shareholders, and the issue of new shares to the vendor. The acquisition is conditional on proceeds of at least £37 million being raised through these share issues.
EPIC will also use existing cash resources and a new 10-year term loan facility of around £54 million, arranged through Aviva Commercial Finance.
According to EPIC, retail parks make up part of the company’s key investment strategy, as there is currently low supply, strong demand from tenants, while sites also present development potential.
This acquisition will bring EPIC’s total portfolio to around £317 million.
William Hill, chairman of EPIC, commented: "I am delighted with the progress of this property transaction and consider these proposals to be an important next step in the development of the company. I am also encouraged with the discussions we have had to date with both our existing shareholders and potential new investors in relation to the equity raising to support these proposals.”
“The board believes that acquiring the new portfolio will be accretive to the level of dividend cover and will provide a number of asset management opportunities, which should enhance the income profile and the capital value of the group's property assets."
The acquisition agreement will terminate if the conditions are not met by 22 December.