This article is from the Australian Property Journal archive
DEVELOPER AVJennings is on the hunt for new opportunities and plans to make a non-renounceable rights issue to raise $51.23 million.
AVJennings is looking to issue one new ordinary share for every three ordinary shares at an issue price of $0.67 per ordinary share. The issue price represents a 7.5% discount to the volume weighted average price.
The maximum number of shares which may be issued under the rights Issue is up to 76,470,788.
AVJ said the purpose of the rights issue is to raise up to approximately $51.2 million, which will be used by the company to assist in funding new projects that the company has recently contracted.
The company recently snapped a key site in Woodville, South Australia from Stockland. The site is adjacent to the Cheltenham Park Racecourse site which AVJ and Urban Pacific contracted to redevelop in November last year.
The company also bought a prime inner Sydney apartment site in Erskineville for $12.5 million.
AVJennings said the funds will also be used to buy interests in other projects and to provide working capital.
Although the offer is not underwritten, AVJennings’ largest shareholder, SC Global Developments and its subsidiaries have indicated to the board that their present intention is to take up their entitlement in full.
Australian Property Journal
