Ann: PLACE: PCT: Precinct announces $60 million e

• Release Date: 03/09/13 10:44
• Summary: PLACE: PCT: Precinct announces $60 million equity issue
• Price Sensitive: No
• Download Document  5.83KB

					

PCT
03/09/2013 08:44
PLACE

REL: 0844 HRS Precinct Properties New Zealand Limited

PLACE: PCT: Precinct announces $60 million equity issue

Not for release or distribution in the United States

Equity raising overview

Targeting to raise $60 million of equity through two initiatives, with the
ability to take up to $70 million
$50 million underwritten placement
$10 million non-underwritten share purchase plan ("SPP") with ability to take
up to an additional $10 million
Placement price underwritten at $1.00
Equity raised will repay bank debt and provide additional capacity to deliver
on existing medium term opportunities
Reduces 30 June 2013 pro forma gearing from 37.3% to 33.8%
Previously announced dividend guidance of 5.4 cents per share confirmed
Previously announced earnings guidance of 6.2 cents per share confirmed

Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) announced today
that the company is targeting to raise $60 million of new equity through two
separate initiatives.

A trading halt in Precinct shares has been granted by NZX to facilitate a
Placement to institutional and habitual investors.

In addition, Precinct plans to undertake an SPP during September and October,
providing an opportunity for retail shareholders who are not eligible to
participate in the Placement.

Scott Pritchard, Precinct's CEO, said over the past two years Precinct has
deployed approximately $320 million to strengthen the business and provide
future growth opportunities. "To acquire such unique and strategic assets at
a low point in the property cycle has been very pleasing and puts us in a
strong position for the future."

The decision to raise equity, along with the ability to divest non-core
assets identified earlier this month, positions Precinct with sufficient
capital to deliver on the existing medium term opportunities within its
portfolio. "Downtown Shopping Centre and Bowen Campus are two exciting
opportunities within the CBDs of Auckland and Wellington. The equity being
raised helps position us to deliver our vision." Mr Pritchard said.

Assuming a successful $60 million raising, pro forma gearing at 30 June 2013
will reduce from 37.3% to 33.8%.

Precinct recently announced a strong result for the year ended 30 June 2013,
underpinned by growth in rental income from acquisitions, higher occupancy,
reduced funding costs and a lower tax expense. Precinct also experienced an
increase in net tangible assets to 99 cents per share due to revaluation
gains and a reduced deferred tax liability.

With occupancy sitting at 97%, no significant lease expiries and a positive
outlook for occupier markets, Precinct is positioned for continued earnings
growth.  Earnings guidance for the year ended 30 June 2014 is confirmed at
6.2 cents per share before performance fees.  Dividends for the year ended 30
June 2014 are expected to be 5.4 cents per share, an increase of 5% over the
year ended 30 June 2013.

The placement will be managed and underwritten by Macquarie Securities (NZ)
Limited and the Placement issue price will be established via a book build
with new shares planned to be allotted on 9 September 2013.

Precinct also intends to undertake an SPP for eligible New Zealand resident
shareholders (with a record date of 19 September 2013). The SPP is targeting
$10 million of new equity and is subject to a $20 million cap. Applications
will be able to be made for up to $15,000 of shares, in parcels which are
multiples of $1,000. Applications may be scaled depending upon demand. The
number of shares to be issued to each subscriber will be rounded up to the
nearest share.

The issue price for the SPP will be the lower of the final Placement price
and the average end of day market price of shares during the period 10 - 16
September 2013 (inclusive) rounded down to the nearest half cent.  Precinct
will not proceed with the SPP if it considers the issue price to be
inadequate.

Shares issued under the Placement and SPP will not be eligible for the FY13
fourth quarter dividend of 1.28 cents per share to be paid on 19 September
2013.

The SPP price will be confirmed on 17 September 2013, with the offer opening
on 23 September 2013 and closing on 9 October 2013. The allotment date for
the shares issued under the SPP is planned for 10 October 2013.

The shares to be issued under the SPP and the placement have been accepted
for quotation on the NZX Main Board (a registered market operated by NZX
Limited, which is a registered exchange under the Securities Markets Act
1988). However, NZX Limited accepts no responsibility for any statement in
this announcement.

-ends-

This announcement has been prepared for publication in New Zealand and may
not be released or distributed in the United States.  This announcement does
not constitute an offer of securities for sale in the United States or any
other jurisdiction. Any securities described in this announcement may not be
offered or sold in the United States absent registration under the US
Securities Act of 1933 or an exemption from registration.

For further information, contact:

Scott Pritchard
Chief Executive Officer
Office: +64 9 927 1640
Mobile: +64 21 431 581
Email: [email protected]

George Crawford
Chief Financial Officer
Office: +64 9 927 1641
Mobile: +64 21 384 014
Email: [email protected]

About Precinct (PCT)
Precinct is New Zealand's only specialist listed investor in prime and
A-grade commercial office property. Listed on the New Zealand Exchange, PCT
currently owns 17 New Zealand buildings - Auckland's PricewaterhouseCoopers
Tower, ANZ Centre, SAP Tower, AMP Centre, Zurich House, HSBC House and
Downtown Shopping Centre; and Wellington's State Insurance Tower, Vodafone on
the Quay, 171 Featherston Street, 125 The Terrace, No. 1 and 3 The Terrace,
Pastoral House, Mayfair House, 80 The Terrace, Deloitte House and Bowen
Campus.
End CA:00240584 For:PCT    Type:PLACE      Time:2013-09-03 08:44:16