Investore's portfolio includes two recent acquisitions in Auckland, anchored by Bunnings and Countdown. Photo / Paul Taylor
Investore Property is eyeing up potential acquisitions with a $100 million capital raising.
The commercial landlord will raise $85m in a fully underwritten placement to institutional investors and another $15m through a share purchase plan at $1.59 a share, a 10.2 per cent discount to yesterday's closing price of $1.77.
Investore said it will accept up to another $5m of additional applications at its discretion.
The funds raised will repay bank debt, taking Investore's loan-to-value ratio down to 30.9 per cent from 41.8 per cent. That will give it more headroom to make any acquisitions that crop up at a time when property values are expected to fall as the Covid-19 outbreak saps economic activity and drives businesses to the wall.
Investore will have capacity to buy about $295m of property while staying within the board's maximum LVR of 48 per cent.
The property investor specialises in big box retail stores, such as supermarkets and hardware stores, on long leases. Its portfolio, including two recent acquisitions in Auckland, anchored by Bunnings and Countdown, and one in Tauranga, anchored by Briscoes and Rebel Sport, was valued at $895.2m.
