19 March 2014 – Stockland announced on Wednesday morning it has acquired a strategic stake in Australand.
A media statement from Stockland said it had obtained a 19.9 per cent (115,166,597 securities) strategic stake in Australand at an average price of $3.78. This comprises a 15.7 per cent direct holding and 4.2 per cent indirect interest.
Stockland chief executive and managing director Mark Steinert said: “Australand has a diverse and complementary portfolio of assets, including a quality industrial portfolio and medium density residential projects that are well aligned with our strategy. Over time this holding will enable us to explore strategic opportunities with Australand.”
The stake will be funded through cash and debt facilities, the statement said. “Gearing will remain within the target range with pro forma gearing at 26.7 per cent. The transaction is expected to be broadly earnings per share neutral.”