Home > Industry > Vicinity Centres $1.4B Raising Reveals Landlord Pain

Vicinity Centres $1.4B Raising Reveals Landlord Pain

ASX-listed shopping mall owner, Vicinity Centres, has provided a snippet of landlord pain amid the coronavirus pandemic, after suspending half-year dividend payments and raising up to $1.4 billion.

VICINITY CENTRES (VCX) Share Price & Information - ASX

Vicinity Centres will snare $1.2 billion via an institutional placement underwritten by Macquarie Capital and Credit Suisse, with a further $200 million through a share purchase plan.

The shopping centre owner has also warned preliminary valuations could see up to $2 billion wiped from its portfolio value, with falls up to 13% expected.

The raising is part of an effort to strengthen its balance sheet, amidst tenants negotiations around rent reductions from the coronavirus pandemic.

The company claims foot traffic has rebounded to 74% of the levels felt at the same time in 2019, with around 80% of its store portfolio reportedly now trading.

Staff cuts and a reduction in director salaries are said to be part of its cost-cutting endeavours.

Shares in Vicinity Centres slumped to $1.52 after market open this morning, and have since slightly rebounded.

You may also like
Samsung’s New AirDresser Sanitises, Deodorises & Straightens
Dicker Data Cross $1B Revenue For H1Y20
Afterpay Shares Hit Record High After Citi Boost
Samsung Leaks Note 20 Ultra On Own Site?
Woolies Beats Optus With Record $1M+ Spam Fine