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FKP raises $A110 million on way to stapling of securities

Queensland-based property developer and retirement village owner-operator FKP Ltd has raised $A110 million through an institutional placement and stapled its shares with the units of the FKP Property Trust to form FKP Property Group.

The 133 million trust units became listed on Friday 5 November and will be stapled on a 1:1 basis. The institutional placement will add 35 million securities to the group and the new group stapled securities will be traded from Tuesday 16 November.

FKP began as the Forrester Parker Group in Brisbane in 1979. It’s now Australia’s biggest retirement village owner & operator, with operations in 5 states.

The company is using the placement to buy 3 retail properties and to retire debt which was increased when it bought 3 office buildings in Sydney & Melbourne early this year.

FKP increased net profit by 37% to $A36.7 million in the June 2004 year. Its gearing ratio rose from 12% to 50% – $A124 million – through an acquisition and the advanced stage of some construction projects, including the Norwest business park in Sydney’s outer-west.

Company highlights for the past year included:

acquiring an 85% controlling interest in Forest Place Group Ltd, taking its units under management to 4000
sales at its signature Peregian Springs development on the Sunshine Coast rose from $A19 million in 2003 to $A40 million; it also launched a private members’ golf club there
it won the tender to buy the stage 2 site of Brisbane’s Newstead Riverpark Gateway, where it plans a mixed commercial & residential development with an $A300 million end value
$A95 million of acquisitions in preparation for the start of the new group, and
completion of the first full year of its FKP Commercial Property Trust No 1.

Website: FKP Property Group

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