Folkstone (FLK) managing director Greg Paramor said the company will use the new capital to increase its investment in the Folkestone Education Trust (FET) and accelerate development opportunities.
“Folkestone is well positioned for its next stage of growth and this $42 million of new capital will facilitate Folkestone increasing its strategic holding in the Folkestone Education Trust, growing its funds management platform and investing in select development opportunities on its balance sheet or co-investing in its development funds,” he said.
According to a statement by Folkestone, the company’s last equity raising in December 2013 resulted in $25 million in new capital and delivered a 36 per cent total shareholder return to participants.
“As at November 2014 FLK has approximately $850 million in funds under management across listed and unlisted real estate funds and an A-REIT securities fund, a 35 per cent increase since the announcement of the capital raising in November 2013,” it said.
Folkestone is currently involved in six development projects, including residential, mixed use and neighbourhood retail sectors, according to the statement.
“These projects have a combined end value of more than $715 million, of which FLK’s share would be approximately $332 million, and will provide the basis for FLK to either invest capital directly, launch new development funds and/or co-invest in its development funds,” the statement said.
“Some of these projects may also provide completed product for our unlisted real estate income series.”
