Abacus Property Group, run by industry stalwart Frank Wolf, has tapped investors for up to $121 million in a non-renounceable scrip offer, with the funds being used to repay debt following the settlement of Oasis Shopping Centre, on the Gold Coast, Queensland.
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According to the documents, the cash raised from the one for 12 share offer, will also provide growth capital for "accretive acquisitions of core plus property, capital commitments to existing and new development projects and third party capital initiatives".
It is being underwritten by JP Morgan and Shaw and will target institutional and retail Abacus investors and other clients of the brokers.
The bookbuild price is $2.82 per new security, which represents a 5.1 per cent discount to the last closing price of Abacus on Friday, March 13, of $2.97 per security.
Abacus is in a trading halt with expectations to resume trading on Wednesday.
Dr Wolf's $1.6 billion group has been one of the more active real estate investment trusts, with the sale last of its half share in the Birkenhead Point Shopping Centre and Marina, with the Kirsh Group, for a combined $310 million, to Mirvac.
The capital has since been reinvested to buy the Oasis Shopping Centre on the Gold Coast for $103.5 million, in a joint venture with investment group KKR.
Brokers have said they expect more cash raisings from the REIT sector in the coming months as the managers look to take advantage of the lower interest rates to shore up balance sheets.
