Property investor Mirvac Group Ltd
(ASX:MGR) has entered into exclusive discussions with Westpac Banking Coporation
(ASX:WBC) regarding the potential acquisition of Westpac Office Trust.
The bank however, emphasised that discussions with Mirvac are non-binding, confidential and incomplete and that there is no certainty that the discussions will lead to a transaction.
In addition to this, Mirvac has announced a fully underwritten institutional placement to raise $350 million and a non-underwritten $150 million security purchase plan for existing shareholders. Shares are to be offered at a fixed price of a $1.40 each.
The property group says the proceeds of the raising will be used to fast track its commercial and residential development pipelines.
Managing director Nick Collishaw says the company is now at an opportunistic time in Australia’s economic and real estate cycle to acquire and develop investment and residential assets.
Mr Collishaw says the company is actively seeking Australian investment grade assets in line with its portfolio.
Mirvac Group fell into the red in fiscal 09, posting a $1.078 billion loss.
