Perth-based residential developer Cedar Woods has completed a $25 million capital raising to fund four new developments in Western Australia and Victoria, and the construction of the Williams Landing town centre project in Victoria.
Cedar Woods said it was pleased with the take-up of the placement, which was priced at $3.45 per share, an 8 per cent discount to its five day volume weighted average price.
The raising was joint managed by Euroz Securities and RBS Morgans.
The developer also launched a share purchase plan for existing shareholders, also at $3.45 per share, to raise a maximum of $5 million.
Cedar Woods said the funds would be applied to stage one of the Williams Landing town centre development in Victoria, which will be anchor-tenanted by Woolworths, Big W and Masters Home Improvement.
The developer is also set to release four new projects over the course of 2012; The Realm in Melbourne, Batavia Coast apartments in Geraldton, as well as residential developments in South Hedland and Piara Central.
Cedar Woods said the placement and share purchase plan significantly increased its financial capacity and ensured it was well positioned for future growth.
“The company continues to assess a number of acquisition opportunities, and by maintaining a strong, conservatively-geared balance sheet, the company will be able to capitalise on the current and future opportunities as they emerge,” Cedar Woods said in a statement.
Cedar Woods shares returned to trade on the ASX this morning, falling 7 per cent to $3.50.
