Westfield America Trust capital raising heavily oversubscribed
15 January 2002
Countries: United States
The capital raising undertaken yesterday to fund WestfieldAmerica Trust’s (WFA) purchase of 14 Rodamco North America (RNA)shopping centres in the US was very successful, being heavilyoversubscribed.
Westfield America Trust has agreed to accept oversubscriptionsfor A$350 million of ordinary units increasing the amount ofyesterday’s placement of ordinary units from A$800 million toA$1.15 billion. As foreshadowed yesterday, Westfield America Trustwill therefore not proceed with the issue of convertible preferenceunits to raise A$350 million.
This placement was the largest yet undertaken in the Australianproperty trust market eclipsing the previous largest placementwhich was the A$450 million also raised by Westfield America Trustin February 2001 for the privatisation of Westfield America.Inc.
Westfield America Trust has also received confirmation thatleading Dutch pension fund, ABP, intends to subscribe for A$200million of ordinary WFA units.
Westfield America Trust capital raisings for the RNAacquisition, which are subject to the approval of Westfield AmericaTrust members and Westfield Holdings Limited shareholders, willtotal A$2.4 billion comprising:
- A$1.15 billion placement of ordinary WFA units toinstitutions;
- A$200 million placement of ordinary WFA units to ABP;
- A$900 million in a combination of ordinary WFA units and commonstock in Westfield America, Inc. to Westfield Holdings Limited,and
- A$150 million of ordinary WFA units through a proposed nonunderwritten retail offering, by way of a prospectus.