Lifestyle Communities, backed by AustralianSuper, is raising A$275m (€167m) through a share issue to support its expansion plans and capitalise on the growing demand for affordable housing in Australia.
Entities associated with AustralianSuper, which hold about 12% of the ASX-listed company’s shares on issue, have committed to take up their full entitlement and sub-underwrite the retail entitlement offer for up to A$40m.
Lifestyle Communities managing director James Kelly, who has a 6.8% stake has also committed to participate in the entitlement offer to the value of A$10m.
Kelly said: “We are seeing a number of opportunities to buy further sites on top of the four that we have already purchased in the year to date.”
He said five land sites had been identified and under due diligence and, which, if executed, were expected to underpin an acceleration in the company’s next phase of growth over the next five years.
The company said there was no change to Lifestyle Communities’ existing focused strategy to provide affordable housing to the downsizer market in Melbourne’s growth corridors and key Victorian regional centres.
In the short term, the funds will be used to repay debt and provide the company with a strengthened liquidity position to act quickly on value-accretive land acquisition opportunities which might arise.
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