Listed real-estate group ING Office Fund has completed a $330 million equity raising and will use the proceeds to pay off debt.
ING Office Fund raised the money from a $90-million placement of new stapled securities to institutions and a two-for-five rights offer that raised $240 million.
The offer price was 45 cents per security. The stock last traded at 55.5 cents.
"The strong result of the equity raising demonstrates the continued confidence and support in IOF's traditional real-estate investment trust model and strategy," ING Office Fund chief executive Tino Tanfara said.
Over 95 per cent of the fund's revenue is derived from rental income.
"The equity raising strengthens IOF's balance sheet by reducing pro-forma look-through gearing to below 27 per cent, post expected 30 June 2009 property devaluations."
The funds from the raising will allow the fund to repay all of its debt maturities until June 2012.
The fund now plans to raise a further $85 million from a retail investor rights offer.
© 2009 AAP
