Diversified property group Mirvac has launched $750 million in equity raising as it announced it expects to deliver at the top end of its financial year guidance.
The new equity will be used to repay debt and secure funding for the group’s development pipeline which has an estimated end value of more than $4 billion.
The equity raising, backed by investment banks JPMorgan, UBS and Macquarie Capital, comes as Mirvac looks to support its growth in office, industrial, residential and mixed-use projects.
ASX-listed Mirvac launched the fully underwritten institutional placement at a fixed price of $2.97 per new stapled security, representing a 4.2 per cent discount to Mirvac's closing price of $3.10.
The group also has a non-underwritten security purchase plan to raise up to $75 million.
Mirvac chief executive Susan Lloyd-Hurwitz said the equity raise was a strategic move and the right time to position the group.
“Mirvac continues to deliver on its $3.1 billion active and committed development pipeline that is fully funded,” Lloyd-Hurwitz said.
Office projects under way include the billion dollar ATP South Eveleigh development in Sydney, 477 Collins Street Melbourne with an end value of $851 million, and the $829 million 80 Ann Street in Brisbane.
“This new equity will be used to repay debt and provide certainty of funding to activate our future, secured commercial development pipeline that has an estimated end value of over $4 billion,” Lloyd-Hurwitz said.
“It will also provide capacity for a number of identified acquisition opportunities currently under due diligence with an estimated end value of over $2 billion.
“These identified acquisition opportunities are all aligned with our urban strategy and asset creation capabilities. They're targeted to deliver in excess of Mirvac’s cost of capital, creating value over the medium-term.”