Redefine International (RIN)‚ the London-based diversified income focused property company‚ on Monday announced plans to participate in and sub-underwrite a capital raising of up to AUD 163 million by the Cromwell Property Group.
Cromwell is an Australian Property Trust listed on the Australian Stock Exchange in which the group currently has a 22.08% interest held through its subsidiary‚ Redefine Australian Investments Limited.
Cromwell is undertaking the equity capital raising to fund a new unlisted property trust‚ reduce debt and provide additional working capital.
The Cromwell Capital Raising is being undertaken by way of underwritten institutional placements of new Cromwell stapled securities and a non-underwritten security purchase plan (in terms of the rules of the Australian Investments and Securities Commission) to eligible Cromwell security holders.
The New Securities will rank pari passu with existing Cromwell stapled securities in issue except that they will entitle holders to a pro-rata share (based on their issue date) of the distributions from Cromwell for the quarter ending 31 December 2012.
Mike Watters‚ Managing Director of Redefine International‚ says the net proceeds of the Cromwell Capital Raising‚ have been earmarked for a number of potential acquisitions. Approximately AUD16 million (GBP10.5 million) has been advanced to the Box Hill Trust to enable it to acquire a proposed development site for a new 20 level Australian Tax Office tower in Melbourne.
He says the transaction is in line with Redefine International’s objective of increasing its presence in the Australian property market and is expected to be earnings enhancing for shareholders in the medium to long-term. - I-Net Bridge