Prime Retail Group has successfully completed its rights issue to raise $90 million to complete capital raisings undertaken to fund its recent U.S investment acquisition.
Prime chairman Brian Healey said the successful rights issue has been completed and the market capitalisation of the vehicle will now increase to around $360 million.
Prime has now settled the purchase of 14 convenience retail shopping centres in California.
Healey said Prime is now on target to achieve its forecast increased distribution of 5.4% to 7.25 cents per security for the year to June 2004.
“This will provide an attractive distribution yield to investors of around 9.4% on the current price.”
Centro Properties chief executive Andrew Scott added that Centro was pleased to be involved in the rights issue and its significant holding in Prime proves its long term confidence in the retail group.
Centro has relocated senior management to California to oversee the operations of the portfolio in conjunction with Centro’s joint partner the Watt Group.
“The co-alignment of interests between investors and management is consistent with Centro’s philosophy to maximise returns for investors.”
