Goodman fund to raise $320m
November 16, 2009
Goodman Group (GMG) said its unlisted industrial fund Goodman Australia Industrial Fund (GAIF) announced it would undertake a $320 million capital raising with the purpose of strengthening its balance sheet. GAIF plans to raise $200 million through a pro rata non-renounceable 1 for 10 rights issue at 75c per share and $120 million through a 12 month mandatory distribution reinvestment plan.
Goodman said it would take up $79 million of the rights issue, while two existing GAIF investors would take up a further $85 million.
Goodman Group CEO and chairman of GAIF, Greg Goodman, said the capital initiatives were the final steps in GAIF’s capital management plan following the significant refinance of its bank debt platform announced as part of the Group’s capital management initiatives in August 2009.
The group said upon completion of the equity raising GAIF’s gearing would be reduced to 33%, which it said was within the fund’s target range of 30% to 40%.
As at 1030 AEDT, Goodman Group shares were up 1c to 62.5.
Goodman said it would take up $79 million of the rights issue, while two existing GAIF investors would take up a further $85 million.
Goodman Group CEO and chairman of GAIF, Greg Goodman, said the capital initiatives were the final steps in GAIF’s capital management plan following the significant refinance of its bank debt platform announced as part of the Group’s capital management initiatives in August 2009.
The group said upon completion of the equity raising GAIF’s gearing would be reduced to 33%, which it said was within the fund’s target range of 30% to 40%.
As at 1030 AEDT, Goodman Group shares were up 1c to 62.5.
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