NATIONAL: Leading global shopping centre group Westfield has revealed plans to raise $2.9 billion from investors through a share placement.
According to a report in national daily The Australian today, investors are expected to fully support the capital raising despite the gloomy retail sales outlook. The placement is pitched at $10.50 a unit and the funds will be used to retire debt and lower gearing to 36 per cent.
Announcing the move, Westfield joint managing director Peter Lowy said retail sales over the 2008 holiday period were markedly lower than those of 2007, and down 0.7 per cent for the year.
Total sales for 2008 dropped 1.2 per cent in New Zealand compared with the previous year - although Australia, which represents around 40 per cent of Westfield's income - recorded a 3.7 per cent increase retail sales in 2008.
Lowy said proceeds from the $2.9 billion placement would strengthen the group's balance sheet and position it for potential acquisitions.
Fund managers were reportedly supportive of the share placement.