Property firm Mirvac has completed a $750 million institutional placement, with capital gathered through the issuing of approximately 252.5 million securities at $2.97 each.
The placement was strongly supported by both existing and new investors.
“We are very pleased with the strong support shown by both existing and new institutional investors for the placement,” Mirvac’s chief executive and managing director Susan Lloyd-Hurwitz said.
The new securities are expected to settle on June 3, and will support the delivery of Mirvac’s future commercial, industrial, residential and mixed-use projects, as well as repaying debt and funding its existing development pipeline.
“This new equity will be used to repay debt and provide certainty of funding to activate our future, secured development pipeline that has an estimated end value of over $4 billion.
“It will also provide capacity for a number of identified acquisition opportunities currently under due diligence with an estimated end value of over $2 billion.”
The property firm noted it expects to deliver at the top end of its FY19 earnings-per-share guidance range of 16.9 to 17.1 cents per stapled security.
Looking forward, Mirvac forecasts a FY20 EPS guidance of 2 per cent growth over FY19, taking into account the impact of the placement and an assumed divestment from a non core asset – Travelodge Hotels.
More information will be provided when the firm presents its annual results in August.