360 Capital Mortgage REIT Announces Successful Capital Raising
360 CAPITAL MORTGAGE REIT (TCF) Share Update December 2024 Tuesday 3rd
360 Capital Mortgage REIT Raises $8.85 Million Through Strategic Placements
360 Capital Mortgage REIT (ASX: TCF) has successfully raised $8.85 million through a combination of wholesale and conditional placements, strengthening its investment capabilities in the Australian real estate market.
Instant Summary:
- $8.85 million raised through wholesale and conditional placements.
- 619,600 new units issued at $5.94 each in wholesale placement.
- 870,948 new units issued at $5.94 each in conditional placement.
- Proceeds to be invested in first mortgage residual stock loans.
- Conditional placement subject to member approval at EGM on 20 December 2024.
Capital Raising Strategy
360 Capital Mortgage REIT, managed by 360 Capital FM Limited, has announced a successful capital raising effort, securing $8.85 million through strategic placements. This includes a wholesale placement of 619,600 new units and a conditional placement of 870,948 new units, both priced at $5.94 per unit. The capital raising aims to enhance the fund's investment portfolio, focusing on credit opportunities secured by Australian real estate assets.
The wholesale placement is set to settle on 9 December 2024, with the issuance of new units on 10 December 2024. Meanwhile, the conditional placement awaits approval from the fund's members at the Extraordinary General Meeting (EGM) on 20 December 2024. If approved, the settlement will occur on 27 December 2024, with the issuance of new units on 30 December 2024.
Investment Focus
The funds raised will be directly invested into two first mortgage residual stock loans across 60 individual mortgages of completed homes in North West Sydney. This strategic investment ensures no cash drag on the fund, aligning with the REIT's objective to deliver regular monthly income through disciplined asset selection and risk analysis.
Ord Minnett Limited and Shaw and Partners Limited acted as joint lead managers for the capital raising, with the proposed investment manager agreeing to pay certain fees for their management services, contingent on member approval at the upcoming EGM.
The successful capital raising positions 360 Capital Mortgage REIT to capitalize on lucrative real estate opportunities, potentially enhancing its income-generating capabilities. The immediate allocation of funds to mortgage loans minimizes idle capital, which can positively influence investor confidence and the fund's market performance.
Investor Reaction:
Analysts are likely to view the capital raising as a positive move, enhancing the fund's investment potential. The focus on first mortgage loans aligns with the REIT's strategy to secure stable returns, which could be appealing to risk-averse investors.
Conclusion:
360 Capital Mortgage REIT's strategic capital raising demonstrates its commitment to strengthening its investment portfolio and delivering consistent returns. Investors should consider the fund's upcoming EGM and the potential approval of the conditional placement as pivotal to its future growth strategy.