(Adds context, CEO comment)
June 1 (Reuters) - Australian shopping centre manager Vicinity Centres (VCX) said on Monday it would raise A$1.4 billion ($931.98 million) to weather the impact from the COVID-19 pandemic on its business.
To further strengthen its balance sheet, the company said it would not be paying any distribution for the six months ending June 30, 2020.
Vicinity is the latest Australian company to tap the market for funds as coronavirus-led curbs kept consumers at home, forcing several retailers to shut stores and reducing rental income for property managers.
Clothing retailer PAS Group Ltd (PGR) on Friday said it went into voluntary administration to review its operations, citing tough financial market conditions.
Vicinity, the country's second-largest listed manager of retail buildings, said it would launch a placement of A$1.2 billion at A$1.48 per security and a security purchase plan to raise up to a further A$200 million.
The funds would "provide Vicinity with flexibility to respond to the uncertainty caused by COVID-19 and the evolving retail landscape," Chief Executive Officer Grant Kelley said.
Its shares closed at A$1.61 on Friday. In March, the property firm withdrew its full-year earnings and distribution outlook due to heightened uncertainty around the impact to retail trading and operating environment from the coronavirus outbreak.
However, the company said that it has seen some early signs of a recovery in foot traffic as restrictions are gradually lifted, while a number of previously closed stores have resumed operations.
($1 = 1.5022 Australian dollars)
