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Kiwi secures funds to repay debt
Posted on Monday, 19 June 2017 13:50
New Zealand-based commercial property leasing firm Kiwi Property Group has announced a rights issue valued at around NZD 160.66 million (USD 116.45 million) in order to pay off some of its outstanding debt.
The company is offering up to 118.13 million shares at NZD 1.36 apiece on the basis of one new stock for every 11 already held.
Goldman Sachs Group, Forsyth Barr and Russell McVeagh are all advising Kiwi on the equity dilution.
Completion is expected on 17th July 2017, subject to the usual raft of conditions.
No further details of the cash call were disclosed.
Auckland-headquartered Kiwi claims to be the largest listed property group on the New Zealand Stock Exchange Main Board.
The business is billed as a frontrunning owner of shopping centres and office buildings across the country, with a property portfolio worth around NZD 3.00 billion.
Kiwi’s shares closed at NZD 1.42 on Friday, valuing the company at over NZD 1.84 billion.
The firm posted a net profit after tax of NZD 143.00 million in the 12 months ended 31st March 2017, a significant decline on NZD 250.80 million in the previous year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 262 deals targeting lessors of non-residential buildings announced worldwide since the beginning of 2017.
The most valuable of these was Digital Realty’s USD 7.60 billion agreement to acquire US firm DuPont Fabros in June in a transaction which is expected to close in the second half of 2017.
This was followed by Sabra Health Care REIT’s USD 2.52 billion acquisition of US-based Care Capital Properties in May.
Other targets include Healthcare Trust of America, Leadenhall Holding and Regency Centers.
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