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(Sharecast News) - Jade Road Investments announced on Friday that it has committed to invest in Unique Property Investment Group and WestOne Capital Group, two companies focussed on high-yield real estate opportunities, including the UK's assisted living sector and high-end international markets.
The company said the commitment, made in partnership with Woollard & Hall (WH), was subject to the completion of a new equity fundraising, satisfactory legal and financial due diligence, and compliance with AIM rules.
It said it also planned to reposition its investment strategy towards a diversified property portfolio.
To support the transition, it said it was launching a new equity fundraising, which could be completed in multiple tranches.
The first tranches would be issued under the general authority granted at the last annual general meeting.
As a preliminary step, Jade Road said it had issued up to 0.25m in zero-coupon unsecured convertible loan notes, which mature in 12 months and are convertible into ordinary shares at 1p per share, a significant premium to the current share price.
WH had conditionally agreed to subscribe to the full 0.25m issuance, with conversion rights available to both the company and WH during the 12-month period.
In light of the strategic shift, Jade Road said it would no longer seek additional convertible loan issuance through its previously-announced partnership with MBM.
The company said it would provide further updates as the fundraising progressed and investment opportunities developed.
"We are delighted to be working with the WH Group providing a platform to deliver their vision of investing in high-yielding and secure investment opportunities in the UK real estate sector," said Jade Road chairman John Croft.
At 1326 GMT, shares in Jade Road Investments were up 5.26% at 0.2p.
Reporting by Josh White for Sharecast.com.
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