Retirement village operator Aevum has closed a $29.4 million institutional share placement that was significantly oversubscribed.
The placement will allow it to fast-track its extensive development and acquisition plans.
“This placement provides Aevum with capital to accelerate the build-through of our organic development pipeline and take advantage of continued strong demand for units at our villages, whilst providing the company with balance sheet capacity to pursue prospective acquisition opportunities,” said the company’s CEO, Simon Owen.
Aevum has also confirmed its predicted earnings per share growth of 5-10 per cent for the 2007/08 financial year.
The company plans to allocate $20 million of the placement proceeds to speed up the development of 496 units and to upgrade existing units throughout its 19 villages.
It predicts that when sold, these developments will bring in $200 million.