PFI raises $14M

By Phil Boeyen, ShareChat Business News Editor

Thursday 5th April 2001

Investment company Property For Industry (NZSE: PFI) has raised almost $14 million from a private placement of shares.

PFI says it has issued 17.9 million new ordinary shares at 77 cents to professional investors, mainly existing shareholders in the company.

Chairman, Allan Lockie, said the net proceeds of $13.78 million will be used for future property investments and to fund expansion of properties in the existing portfolio.

"This placement is considered by the directors to provide the most economic means of capital expansion for the company at this time and at the least cost to investors."

Mr Lockie says the purchase announced this week of two Auckland properties for $9.8 million took the company's debt level to its self-imposed ceiling of 35%. Following the placement the debt level will be 29%.

"A number of attractive expansion opportunities remain available to the company - we estimate that PFI currently owns less than 5% of its target market. It is therefore in the interests of all shareholders that the company has the financial resources to capitalise on these opportunities."

Mr Lockie says it is a logical time for the company to raise capital, with strong interest in the listed property sector in the current environment.

Comments from our readers

No comments yet