This article is from the Australian Property Journal archive
AUSTRALIAN Unity is looking to raise $75 million for its “ongoing capital management strategy”.
The non-underwritten 1 for 3 pro rata non-renounceable entitlement offer price of $72.50 per new mutual capital instruments represents an 11.60% discount to the previous closing price.
“Proceeds from the Equity Raising will form part of Australian Unity’s ongoing capital management strategy and are intended to be used to enhance resilience and provide balance sheet flexibility to support Australian Unity’s core vision to enable real wellbeing for our members, customers and community through our portfolio of commercial, sustainable businesses,” Australian Unity said in an ASX statement.
“To this end, proceeds may be used to repay debt facilities that were utilised to fund the recent acquisition of myHomecare Group as well as transaction costs,” it said, referring to its $285 million buyout of Australia’s largest private home care business.
Australian Unity, through its Australian Unity Office Fund, has lodged plans for a 68-storey build-to-rent tower at its 2-10 Valentine Avenue site in Parramatta, where it has been exploring its options for some time.
The fund’s assets are gradually being offloaded. It has also reportedly found a buyer for its 11,000 sqm 150 Charlotte Street tower in Brisbane, for $64.5 million, and is in due diligence with a purchaser at a St Kilda Road property in a deal that is likely to reflect something close to the assets $70 million book value.
