Stockland push to raise $400m
Stockland wants to raise $400 million through an institutional placement to reduce debt and expand its retail development program.
It comes a week after the group unveiled its strategic direction with a focus on its retail and residential operations.
Under the terms of the deal, being underwritten by UBS, Stockland will offer 103 million new securities representing 4.7 per cent of issued capital at $3.88 per security. That was a 2.5 per cent discount to the last closing price of $3.98 on Tuesday.
In the strategic review, chief executive Mark Steinert said for the 2013 year Stockland's earnings would come in at the lower end of the 20-25 per cent range of decline that he warned of at the half-year results in February.
At an investor briefing last week Mr Steinert also indicated Stockland would reintroduce its distribution reinvestment plan, but analysts said this was now likely to be replaced by the placement.
The capital raising also comes amid suggestions that the group was looking to shed 80 staff in coming weeks.
It has already announced the departure of its head of residential, Mark Hunter, and chief financial officer Tim Foster, who leaves later in the year.
Mr Steinert said Stockland was in transition and would remain a broadly diversified property group, "leveraging its core asset and development strengths in shopping centres, residential and retirement living, while retaining and, over time, increasing exposure to industrial property as a core capability".