AustralianSuper-backed Lifestyle Communities raises A$275 million (€167 million) through share issue to support expansion plans and capitalize on growing demand for affordable housing in Australia are procuring.
An affiliate of AustralianSuper, which holds approximately 12% of the ASX-listed company's outstanding shares, has pledged to take over the rights in full and subcontract the retail rights offer for up to A$40 million.
Lifestyle Communities managing director James Kelly, who holds a 6.8% stake, has also committed to participate in the entitlement offer worth A$10 million.
“We believe there are many opportunities to purchase additional sites in addition to the four we have already purchased so far this year,” Kelly said.
He said five land sites have been identified and are undergoing due diligence, which, if executed, are expected to support the acceleration of the company's next phase of growth over the next five years.
The company said there was no change to Lifestyle Communities' existing focus on delivering affordable housing to the downsizer market in Melbourne's growth corridors and Victoria's key regional centres.
In the short term, this funding will be used to repay debt and provide the Company with an enhanced liquidity position to act quickly on any rising value land acquisition opportunities that may arise. .
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