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Vicinity Centres Undertakes A$1.4 Billion (US$810 Million) Institutional Placement

June 1, 2020 — Vicinity Centres (Vicinity, ASX:VCX) today announced it is undertaking:

  • a fully underwritten institutional placement to raise $1,200 million (the ‘Placement’), and
  • a non-underwritten Security Purchase Plan (‘SPP’) to raise up to a further $200 million (together withthe Placement, the ‘Equity Raising’)1 Additionally, announced today:
  • The Vicinity Board has determined not to pay any distribution for the six months ending 30 June 2020
  • Preliminary draft valuations received as at 29 May 2020 indicate a reduction in aggregate asset value asat 30 June 2020 in the order of 11% to 13% or $1.8 billion to $2.1 billion. These valuations are preliminary and are subject to finalisation and audit. Final valuations could result in a change in aggregate asset value as at 30 June 2020 within, above or below this range, and will be advised once received, expected to be in mid-July 2020.Mr Grant Kelley, CEO and Managing Director, said: “We are taking decisive action today to strengthen our balance sheet and provide Vicinity with flexibility to respond to the uncertainty caused by COVID-19 and the evolving retail landscape. This Equity Raising also provides support for the continuation of Vicinity’s investment-grade credit ratings.”The Placement component of the Equity Raising is expected to have the following financial impact to the 31 December 2019 pro forma balance sheet2:
    • Gearing3 reducing to 26.6% from 34.9% pre-Placement
    • Net tangible assets per security (NTA) reducing to $2.23 from $2.40 pre-Placement
    • Cash and undrawn debt facilities of $2.6 billion

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