THE Brockwell Hospitality Investments/Western Plaza Corporation has granted the proponents of the Raine Square Property Trust a month-long extension to raise the minimum $7.5 million subscription it requires to purchase the $25.7 million Raine Square.
It is the second time the Western Plaza/Brockwell group has granted Raine Square Management –comprising Perth businessmen Neil McKinnon, Craig Hughes and George Patterson – an extension. The previous extension, from August 15 to October 10, was granted due to the late finalisation of the prospectus.
Raine Square Management now has until the end of November to raise the $7.5 million minimum subscription to secure Raine Square, which it plans to convert into 195 market stalls to create Perth’s first inner-city market.
Once the minimum subscription is raised, Raine Square Management then has about 12 months to raise the remaining $22.5 million.
Raine Square Management executive chairman Neil McKinnon said that subscriptions were coming in weekly, although more slowly than the group would like.
Mr McKinnon said there was significant interest in the project from local investors and from interstate.
He said there was a large contingent of investors from Melbourne interested and, if the subscriptions came through, the trust would be 60 to 70 per cent filled.
Even if the Raine Square Property Trust doesn’t make the minimum subscription mark by end of November, Mr McKinnon is confident that the Western Plaza/Brockwell group will grant the trust another extension.
“It’s a good deal for them, it allows them to expand further in the eastern States and the markets will bring more patrons to their hotel.” he said.
The Brockwell/Western Plaza group intends to lease back the Royal Hotel, the Wentworth Hotel and the Moon-’n’ Sixpence from the trust and has indicated it will take its lease out to 2009.