This article is from the Australian Property Journal archive
Charter Hall Group has joined the Pivot Group in backing Axiom Properties’ capital placement.
Yesterday, Axiom announced that it has completed a 15% placement in the company through the issue of 43.613 million shares at 30 cents each – raising $13 million.
Charter Hall has subscribed to 16.7 million shares or 4.99% of the expanded capital, totaling $5 million.
In addition, Charter Hall and Pivot Group have also entered into a strategic alliance agreement over Pivot’s $ 1 billion property development pipeline. This alliance will give Charter Hall a second right to participate in Pivot’s projects, which may occur in joint venture with Axiom.
Axiom’s executive director Ben Laurance said the money raised will be used to take advantage of new development opportunities that will flow from the recently executed strategic alliance agreement with major shareholder Pivot Group.
“This raising gives Axiom the equity to pursue opportunities that are currently in Pivot’s pipeline,” Laurance said. “Pivot is currently incubating over $1 billion worth of developments around Australia, which it is obliged to offer Axiom under the Strategic Alliance Agreement.”
Charter Hall’s joint chief executive David Harrison said the Pivot Group alliance and the associated Axiom investment represents an equity based alliance delivering further access to Pivot Group’s projects and deal flow.
Axiom currently has two major projects in Western Australian, including a 40% interest in a marina/canal subdivision at Port Geographe, north of Busselton. Of the 621 lots, 121 lots in Stage 1, worth $50 million, were sold on the first day of the release in early 2006. The project is expected to extend over five to six years. The project’s remaining 60% interest is held by Macquarie Bank and Saracen Properties.
Axiom has also secured a 50% profit share of a 28,000 sqm A-grade office development at 100 St Georges Terrace Perth, being developed with Pivot’s development partners, ISPT.
Southern Cross Equities, who also brought some institutional support to the register by placing approximately 15 million shares to specialist small cap fund manager, Paradice Investment Management, arranged the placement.
The balance of the raising went to other high net worth clients of Southern Cross and Bell Potter Securities.
The directors also propose subject to obtaining shareholder approval at the company’s annual general meeting in November, placing a further 1 million shares at 30 cents to director Michael Blakiston.
By Nelson Yap
