Following on from its trading halt on Wednesday Shopping Centres Australasia Property Group (ASX: SCP) announced the successful completion of its institutional capital raising (click here to learn what capital raising means).
In its public filing, SCA Property Group said it sold 113 million shares at $2.32 to raise $262.4 million. The price represents a 2% discount to the market price for its shares.
SCA Property Group is a real estate investment trust (REIT) which owns a portfolio of shopping centres and complementary assets.
What’s Going On?
On Wednesday, SCA Property Group announced it would buy 10 neighbourhood shopping centres from Vicinity Centres (ASX: VCX). The portfolio of centres stretches from Victoria to Queensland to Western Australia.
“As announced on 3 October 2018, proceeds from the Placement will be used to partly fund the acquisition of a portfolio of ten convenience-based shopping centres in Australia (the “Acquisition”) for a combined purchase price of $573 million,” SCA Property Group’s announcement read.
It will fund the remaining purchase price using debt.
Vicinity’s CEO Grant Kelley said, “These transactions are a significant achievement and advance our strategy to unlock major potential in the business.”
In its announcement, SCA Property Group said the deal will add 5% to its funds from operations and improve its cost base.
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