Sydney-listed real estate group Valad announced a fully underwritten equity raising to raise AUD$56.5 mln (EUR 33.3 mln). The proceeds will be used to settle the deferred liability of 拢29.5 mln which stems from Valad's acquisition of UK-based funds management business Scarborough in 2007 to form the basis of its European platform.
Sydney-listed real estate group Valad announced a fully underwritten equity raising to raise AUD$56.5 mln (EUR 33.3 mln). The proceeds will be used to settle the deferred liability of 拢29.5 mln which stems from Valad's acquisition of UK-based funds management business Scarborough in 2007 to form the basis of its European platform.
The cash payment will supersede an agreement in August to repay Scarborough founder Kevin McCabe with a mixture of cash, loan notes and Valad shares. It was indicated last month that McCabe, the chairman of Sheffield Wednesday football club, would lead the restructuring of Valad's operations in Australia, Asia Pacific and Europe.
Valad also announced plans in August to place its European and UK holdings in a 50:50 joint venture with Bank of Scotland. Valad said it was contributing property valued at A$469 mln (EUR 268 mln), associated liabilities of A$761 mln (EUR 435 mln) and net equity in joint ventures and investments of A$382 mln (EUR 218 mln) to create the Diversified UK and European (DUKE) joint venture.
