Stockland to raise $400m to cut debt and fund development
Stockland has plans 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, or 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 he warned of at the half-year results in February.
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.