Vicinity Centres (ASX:VCX) launches $1.4b raising, $2.1bn hit to mall valuations; distribution shelved

Company News

by Anna Napoli

Shopping Centre owner, Vicinity (ASX:VCX) has launched a $1.4 billion capital raising as the company revealed a valuation hit of up to $2.1 billion on its assets.

The landlord is raising $1.2 billion through an institutional placement and raising an additional $200 million through a share purchase plan.

New shares will be issued at $1.48, an 8.1 per cent discount to the last closing price of $1.61.

Mr Grant Kelley, CEO and Managing Director says “We are taking decisive action today to strengthen our balance sheet and provide Vicinity with flexibility to respond to the uncertainty caused by COVID-19 and
the evolving retail landscape.”

Preliminary valuations show an hit to aggregate asset values at June 30 of  at least 11 per cent or between $1.8 billion and $2.1 billion.
Vicinity will not a distribution for the six months to ending June 30.

Shares in Vicinity (ASX:VCX) have plunged over 40 per cent in the past six months as the retail sector was hit hard by covid-19 lockdown. Shares have started to come back in the past month rising 18 per cent. Today shares in the company are in a trading halt and last traded at $1.61 on Friday.