PFI Issues 17.9m Shares In Private Placement
Release to the New Zealand Stock Exchange
Property For Industry announced today that it had issued 17.9million new ordinary shares in a private placement to professional investors, mainly existing shareholders in the company.
The issue price was $0.77 and settlement will take place on 10 April 2001.
PFI chairman Mr Allan Lockie said the net proceeds of the issue would be $13.78million, which will be used by the company for future property investments and to fund expansion of properties in the existing portfolio. This placement is considered by the Directors to provide the most economic means of capital expansion for the Company at this time and at the least cost to investors.
“On Tuesday [April 3] we announced the purchase of two Mt Wellington properties for $9.8 million. These purchases took PFI’s debt level to its self- imposed ceiling of 35%,” said Mr Lockie.
“A number of attractive expansion opportunities remain available to the company - we estimate that PFI currently owns less than 5% of its target market. It is therefore in the interests of all shareholders that the company has the financial resources to capitalise on these opportunities.”
Mr Lockie said this was a logical time to raise capital, as there is strong interest in the listed property sector in the current environment. The company’s share price had recently been trading at a premium to net tangible asset backing.
PFI’s debt level following the placement will be 29%.
JB Were & Sons (NZ) acted for PFI in arranging the placement.