Kiwi Income considers $150m capital raising

Auckland's Sylvia Park shopping centre, owned by Kiwi Income Property Trust. Photo / Kenny Rodger.

Kiwi Income Property Trust is considering raising $100 million to $150m through a primary offer and an entitlement offer of unsecured subordinated mandatory convertible notes.

The trust owns properties such as the Sylvia Park mall in Auckland, the Vero Centre and the Majestic Centre in Wellington.

Should the offers go ahead, proceeds would initially be used to reduce net bank debt and may be used for new investment opportunities, Kiwi Income said today.

The trust was seeking preliminary indications of interest from investors. Goldman Sachs JBWere was advising the trust on the potential offer.

A month ago the trust said the total value of its portfolio, which includes key retail centres and office buildings, had fallen 3.5 per cent to $1.83 billion.

At the time Sean Wareing, chairman of the manager of the trust, said the rate of decline in values appeared to be slowing and there was an expectation that recent improvements in global economic conditions would help to stabilise property values.

- NZPA