MGR set to raise $500m as its eyes Westpac Office Trust
April 6, 2010
Westpac said that it has entered into exclusive discussions with Mirvac Group (MGR) for the property group to acquire Westpac Office Trust. The discussions, which involve the purchase of all units and instalment receipts, would allow Mirvac to conduct due diligence on Westpac Office Trust. Westpac stressed however that there was nothing binding or certain in relation to these discussions.
Meanwhile Mirvac has announced a fully underwritten Institutional Placement to raise $350 million, coupled with a non-underwritten $150 million security purchase plan for existing shareholders.
Mirvac suggested the funds raised would be used for any potential purchase of Westpac Office Trust, while also allowing the ‘fast tracking’ of its commercial and residential development pipelines.
Managing Director, Nick Collishaw said the group was at an opportune time in Australia’s economic and real estate cycle to acquire and develop investment and residential assets.
“Raising capital allows the Group to expedite the development of its existing commercial and residential project pipelines whilst enhancing the Group’s balance sheet strength and improving our credit metrics,” Mr Collishaw said.
The group said the Institutional Placement would offer new stapled security at $1.40 each, or a 5.5% discount to yesterday’s closing price of $1.48.
At the same time, Mirvac reaffirmed its previously offered guidance of 9.2c per security.
Meanwhile Mirvac has announced a fully underwritten Institutional Placement to raise $350 million, coupled with a non-underwritten $150 million security purchase plan for existing shareholders.
Mirvac suggested the funds raised would be used for any potential purchase of Westpac Office Trust, while also allowing the ‘fast tracking’ of its commercial and residential development pipelines.
Managing Director, Nick Collishaw said the group was at an opportune time in Australia’s economic and real estate cycle to acquire and develop investment and residential assets.
“Raising capital allows the Group to expedite the development of its existing commercial and residential project pipelines whilst enhancing the Group’s balance sheet strength and improving our credit metrics,” Mr Collishaw said.
The group said the Institutional Placement would offer new stapled security at $1.40 each, or a 5.5% discount to yesterday’s closing price of $1.48.
At the same time, Mirvac reaffirmed its previously offered guidance of 9.2c per security.
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