Como-based property developer Port Bouvard Ltd has announced plans to raise $111 million through a placement and rights issue, to fund the acquisition of 275 hectares of waterfront land at Point Grey on the Peel-Harvey inlet.
Como-based property developer Port Bouvard Ltd has announced plans to raise $111 million through a placement and rights issue, to fund the acquisition of 275 hectares of waterfront land at Point Grey on the Peel-Harvey inlet.
The company said it had agreed to place almost 9.5 million shares to institutional and sophisticated investors at an issue price of $2 per share to raise approximately $18.9 million.
The placement is fully underwritten by Euroz Securities Ltd.
In addition to this placement, Euroz is also backing Port Bouvard's plans for a renounceable rights issue for all shareholders of four new shares for each five existing shares at an issue price of $1.60 per share to raise about $93 million.
Late last year Port Bouvard acquired the waterfront land at Point Grey for $92 million. Point Grey is located on the eastern shore of the Peel-Harvey inlet. The land, which is currently used for farming, is expected to accommodate 2,000 homes.
Port Bouvard managing director Ross Neumann said the placement had closed oversubscribed following a very successful roadshow.
This financial year, Port Bouvard also purchased sites for another two new residential developments in the Mandurah-Peel region at Dawesville and Melros.
The company also said it has entered into heads of agreements for residential land projects at Furnissdale, between Mandurah and Pinjarra, and at Esperance, on Western Australia's south coast.
The full text of a company announcement is pasted below
Port Bouvard Limited is pleased to advise it has secured funding to complete the acquisition of the landmark Point Grey project, near Mandurah in Western Australia, through an underwritten placement and proposed renounceable rights issue.
The combined value of this fundraising is approximately $111 million.
The Company has agreed to place approximately 9.45 million shares to institutional and sophisticated investors at an issue price of $2.00 per share to raise approximately $18.9 million (before expenses). The placement is fully underwritten by Euroz Securities Limited.
The placement follows an East Coast institutional roadshow undertaken by Port Bouvard's senior management during the past week.
Port Bouvard managing director Ross Neumann said the placement had closed oversubscribed following the very successful roadshow.
"There was a huge amount of serious interest in the Port Bouvard story and what the Company has to offer during the next few years," he said.
"Importantly the new investors that will come on to the share register of the Company via this placement, include key institutions and sophisticated investors, and will be vital to our continuing success going forward".
"This is a big milestone for the Company. We are now looking forward to developing our recently acquired projects and continuing to evaluate new opportunities that will assist in enhancing our product offering moving forward."
Port Bouvard late last year entered into an agreement to acquire 275 hectares of waterfront land at Point Grey for $92 million. Point Grey is located on the eastern shore of the Peel-Harvey inlet, across from the Company's Port Bouvard Residential Resort Estate.
The land is currently used for farming.
The Point Grey site is expected to yield more than 2,000 home sites.
In 2006-07, Port Bouvard also purchased sites for a further two new residential developments in the fast growing Mandurah-Peel region at Dawesville and Melros.
In addition to the Point Grey project, these projects firmly establish Port Bouvard as the pre-eminent property developer in the Mandurah-Peel region.
The Company has also entered into Heads of Agreements for residential land projects at Furnissdale, between Mandurah and Pinjarra, and at Esperance, on Western Australia's south coast - a fast emerging growth region.
In addition to this placement, the Company also proposes to now proceed with a renounceable rights issue to all shareholders.
The renounceable rights issue will be an issue of four new shares for each five existing shares held on the record date at an issue price of $1.60 per share to raise approximately $93 million (before expenses).
The renounceable rights issue for approximately 58 million ordinary fully paid shares is also fully underwritten by Euroz Securities Limited.
A shareholder who holds shares in Port Bouvard Limited by the record date will be eligible to participate in the rights issue. The Company expects to announce the record date soon.
A prospectus for the renounceable rights issue offer of Port Bouvard Limited shares will also be made available shortly.
