PERTH-BASED property funds and asset management group, Peet Ltd, will raise $80 million through an institutional placement to develop new profit streams and make acquisitions. The offer is for 20 million new shares at an issue price of $4.10. The company, which listed in August 2004 and has a market capitalisation of about $850 million, has also announced plans to undertake a share purchase plan, allowing existing shareholders to subscribe to an entitlement of up to $5,000 worth of shares. In addition to this, Peet has issued two syndicated land investment schemes, aiming to raise $16 million each for the Peet BotanicVillage Syndicate Ltd – 64 hectares in Cranbourne South, Melbourne – and the 145ha Peet Mundijong Syndicate Ltd, through the sale of 16 million shares at $1 each. Peet has underwritten the two schemes. Peet CEO Warwick Hemsley said in a statement that the $82 million equity raising would strengthen the company’s capital position to accelerate growth of the funds management business. “We are keen to build on an already strong balance sheet and further grow the company’s newer development projects including Peet’s diversification into the retirement and commercial property sectors.”
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