By a staff reporter
Stockland Ltd has raised $400 million through a fully underwritten placement to institutional investors, with the proceeds to reduce the group's balance sheet gearing by three per cent.
In a statement to the Australian Securities Exchange, Stockland announced it sold 103 million securities at a price of $3.88, a 2.5 per cent discount on yesterday's closing price.
Stockland managing director and chief executive officer Mark Steinert said: the completion of the placement, highlighted investors' confidence in the group's new strategic direction.
"The proceeds will help fund our $1.5 billion accretive retail development pipeline, with projects in strong trade areas, accretive pre-AIFRS yields of 7 to 8 per cent and incremental internal rates of return (IRR) of 13 to 14 per cent," he said.
Stockland said the placement was not expected to impact on earnings per security in either fiscal 2013 or 2014.