Arena REIT shares fall after completing $120m placement
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The news: Shares in Arena REIT lowered on the ASX after the company announced the completion of its $120 million institutional placement this morning.
The numbers: Arena shares were down 3% to $3.84 by 2:35pm AEST.
The placement was priced at $3.78 per share, a 4.5% discount to Arena's closing price of $3.96 on Monday.
The company said the equity raising will support $92 million worth of new acquisitions, comprising six early learning centre (ELC) properties for $58 million and four ELC developments with a total anticipated project investment of $34 million.
The context: Arena said the placement was strongly supported by existing shareholders and new institutional investors.
Settlement of the placement is expected to take place on 26 July, with shares issued under the placement to commence trading on 29 July.
Arena also intends to offer a security purchase plan (SPP) to raise up to $20 million. The issue date of the SPP shares will be 27 August and the issue price will be the same as for the institutional placement.
The source: ASX announcement
