360 Capital Industrial fund has launched $63.7 million in fully underwritten equity raising, as part of its deleveraging strategy.
The fund has completed the placement to institutional investors of new units to raise $12.3 million as well as a one for 1.6 non-renounceable entitlement offer to raise a further $51.4 million in capital.
"This capital raising is an important step to improve balance sheet strength in order to continue the fund's repositions strategy and maximise unit holder returns," 360 Capital Property Group managing director Tony Pitt said in a statement to the Australian Securities Exchange.
"We are pleased to see a number of new institutional investor enter the register, underscoring the attractiveness of the fund and investing alongside the existing 28,000 unit holders who will have the opportunity to participate in the entitlement offer."
360 Capital said the proceeds of the equity raising will simplify the fund's balance sheet by repaying $34.4 million of senior debt and fully repaying $26.0 million in unsecured notes.
The result of this reduction in borrowing will reduce the fund's loan to value ration from 57.4 per cent as of December 31 last year to 47.7 per cent.
360 Capital said its deleveraging strategy has been in place since December 2010 and is designed to reduce the fund's risk profile and maximise unit holder returns.
Settlement under the institutional placement is expected to be completed on April 10 with new unites expected to be traded the following day.
The entitlement offer will open on April 11 and close at 5pm on April 26.
