Australand Property Group's (ALZ) major shareholder has sold a 20% chunk of the group to a range of existing and new institutional investors.
In a statement to the Australian Securities Exchange, Capitaland Ltd said when the placement is completed, its interest in Australand will be reduced from 59.1 per cent to 39.1 per cent.
The placement was priced at $3.685 per security, a 1.7% discount to Australand's closing price yesterday, when the shares were sold in an aftermarket book build.
Australand will now become an associated company of Capitaland, which will remain its largest shareholder.
Australand managing director Bob Johnston said the support from new and existing investors "significantly increases the group's free float".
"This should provide longer term benefits for investors," Mr Johnston said.