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Source: ONE News -
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Kiwi Income Property Trust (KIPT) says it successfully completed a $50 million institutional placement announced to the market on Wednesday.
The company said today the placement involved about 56.9 million ordinary units at a price of 87.9 cents a unit.
The price was an 8.4% discount to the closing price of units on Tuesday, the day before the placement.
Proceeds of the equity raising would be used to reduce debt and strengthen the trust's financial position, KIPT said.
Before the placement, bank debt represented about 33% of total assets. The effect of the institutional placement and recent asset sales would be to reduce that gearing level to about 29%.
Chris Gudgeon, CEO of trust manager Kiwi Income Properties Ltd, said the placement closed well oversubscribed with strong support from existing domestic and international investors as well as a number of new investors to the register.
A trading halt placed on KIPT on Wednesday was lifted.
