AEVUM closed a $29.4 million institutional share placement, significantly oversubscribed.
Aevum’s chief executive Simon Owen said the placement will allow the company to accelerate its organic development pipeline as well as to provide funds for future acquisition opportunities.
“Across our portfolio 14 villages are now operating above our targeted long-term occupancy rate of 95% including 5 villages operating at 100% capacity. Lack of available stock is becoming an issue at some villages.
“Earlier this year when prices for mature villages overheated we diverted the focus of our acquisition team onto an internal asset review project. Resulting from this we have identified another 60 development sites across our portfolio including densification, redeveloping old facilities and acquisition and development of adjacent house sites,” he added.
Aevum is intending to allocate $20 million of the placement proceeds to accelerate the development of 496 DA approved units or identified unit sites across its 19 village portfolio.
The forecast sales value of these units, to be developed over the next four-five years, exceeds $200 million.
The placement of approximately 11.1 million shares was completed at a price of $A2.65 per share.
Aevum also confirmed its guidance for FY08 of earnings per share growth of 5% – 10% on the company’s post placement capital base.
Australian Property Journal
