Aevum Limited has completed a $40 million institutional share placement which was significantly oversubscribed.
The placement funds will allow Aevum to continue its acquisition growth strategy, as well as providing funding for the development of the Cardinal Freeman village located in Ashfield, Sydney while maintaining its gearing within its stated range of 30-35%.
Aevum is in exclusive negotiations on the acquisition of four retirement villages which would cost approximately $40 million.
Aevum’s chief executive Simon Owen said the placement provides capital which will allow Aevum to continue its growth strategy of expanding to more than 2,000 retirement units through organic growth initiatives and acquisitions while maintaining appropriate gearing levels.
The placement of 14.5 million shares was completed at a final price of $2.76 per share being a 5% discount to the last closing price of $2.90.
The placement was supported by existing institutional shareholders and more than 20 new institutional investors.
Australian Property Journal
