LPT’s kick-off capital raising push
Two listed property trusts have launched their initial public offer campaigns ahead of proposed listings on theAustralian Stock Exchangenext month.
Valad Opportunity Fund (VOF) No.11 is seeking to raise $33 million through its initial public offer (IPO) and will invest opportunistically in the acquisition, development and on-sale of properties, while the Village Life Trust IPO opened last Friday, offering potential investors exposure to the prospective high growth sector of managed rental accommodation for seniors.
The responsible entity of VOF will be Valad Commercial Management - a subsidiary of the listed Valad Property Group.
It is intended that VOF will pay quarterly distributions at the rate of 8.5 per cent per annum based on the Issued Equity of the Units for 6 years commencing July 1 2004. These distributions will be funded from a combination of after-tax profits and capital return and may carry franking credits.
Meanwhile Village offering is anticipating raising $56 million from the IPO and will initially own 22 villages and 7 manager units in five states throughout across Australia.
Village Life’s non-executive chairman David Jeffries says that the trust is forecasting a cash distribution yield to investors of 8.25 per cent on an annualised basis to 30 June 2005 and 8.5 per cent for the financial year ending 30 June 2006.
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