Property trust, GPT Group, has confirmed that it is after new capital to help finance the purchase of 50% of a new building in the Sydney CBD to be built by Grocon.
GPT said yesterday it will seek to raise $400 million in a capital raising through its unlisted GPT Wholesale Office Fund.
Proceeds from the raising will be used to retire debt and to strengthen the fund’s balance sheet, GPT said in the statement.
GPT said the current equity raising provided an opportunity for investors to increase their exposure to quality core Australian real estate at an attractive point in the valuation cycle.
The fund holds interests in 15 assets with a total value of around $2.9 billion.
"GWOF is the largest unlisted Australian office fund, with interests in 15 assets and a total value of approximately $2.9 billion.
"The Fund has exposure to quality assets such as the Darling Park Complex and workplace in Sydney, 530 Collins Street and 800 and 808 Bourke Street buildings in Melbourne, and Riverside Centre in Brisbane.
"It also recently acquired 50 per cent of the premium grade 163 Castlereagh Street in Sydney," GPT said in the statement. That’s the Grocon project.
GPT said at March 31, the fund had gearing of about 22% and more than $250 million in undrawn facilities. To finance its 50% of the new Sydney building, more money and a lower gearing will be needed from those figures, which is the rationale for yesterday’s announcement.
GPT securities closed unchanged yesterday at 58c.
Perseus Mining yesterday revealed plans to raise up to $CAD130 million ($A138.6 million) to strengthen its balance sheet ahead of first gold production at its Central Ashanti project in Ghana next year.
In a statement to the ASX yesterday the company said that a syndicate of Toronto-based underwriters had agreed to buy and sell to the public 44 million Perseus shares at a price of $CAD1.80 ($A1.92) per share worth $CAD79.2 million ($A84.4 million).
The underwriters also have the option to buy up to an additional 66.6 million Perseus shares worth $CAD91.08 million ($A97.09 million).
The underwriters comprise Cormark Securities Inc, Clarus Securities Inc, BMO Nesbitt Burns Inc, CIBC World Markets Inc and Dundee Securities Corporation.
The company also plans to complete a private placement of up to 15 million ordinary shares, mostly to investor in Australia. As well there will be a share purchase plan (SPP) of up to seven million Perseus shares to shareholders in Australia and New Zealand.
Shares offered under the private placement and the Shareholder Plan will be issued at $CAD1.80 ($A1.92) each.
Perseus said the net proceeds of the share issues would be used to fund ongoing exploration and development of its West African gold properties and for general corporate purposes.
Shares in Perseus closed down 3c at $2.02 yesterday.
