Australia's GPT to raise A$1.6 bln to cut debt
MELBOURNE, Oct 23 (Reuters) - Australian listed property trust GPT Group (GPT.AX) plans to raise A$1.6-1.9 billion ($1.07-1.28 billion) in a rights issue and placement to cut debt and ease concerns over its gearing, the firm said on Thursday.
It said it would raise at least A$1.3 billion through a deeply discounted 1-for-1 rights issue priced at A$0.60-$0.75 per share, a 35-48 percent discount to its last-traded price.
It would also raise about A$250 million through a placement of exchangeable securities.
GPT's shares last traded at A$1.15, ahead of a trading halt which GPT placed on its shares on Wednesday after a newspaper reported it was preparing to raise A$1 billion priced at as much as a 50 percent discount to its last trade.
The raising comes as the group has struggled to sell off its Voyages Lodges chain of eco resorts and its U.S. seniors housing business to shore up its balance sheet.
The group had a net asset backing of A$3.68 a share as of June 30.
(Reporting by Sonali Paul and Mark Bendeich; editing by James Thornhill)
