CFS Retail Property Trust
(ASX:CFX) has launched $540 million capital raising to fund the purchase of four Direct Factory Outlet centres at a cost of $498 million.
CFS is to buy the four retail outlet centres from Austexx Propriety Limited’s DFO portfolio at a cost that reflects an 8.26 per cent weighted average capitalisation rate.
CFS will acquire DFO Homebush in Sydney, DFO Essendon, DFO Moorabbin and DFO South Warf in Melbourne.
The $540 million capital raising will be executed via a share placement to institutional investors at a $1.86 a share, and a share purchase plan for eligible shareholders.
The acquisition of the four centres will increase CFS Retail’s portfolio to 29 properties valued at $8.105 billion.
CFS says the centres will be neutral to earnings per unit in fiscal 2011 and contribute to earnings from fiscal 2012 onwards.
CFS Retail Property Trust posted earnings of $315.02 million for the year to June 30, 2010.
