Mfs Divers Raises $40m On Its Way To $500m

Sydney Morning Herald

Wednesday September 21, 2005

Edited by Carolyn Cummins ccummins@smh.com.au

Southport-based property developer MFS Diversified Trust is to increase the size of its asset base to more than $200 million after unit holders approved the issue of $40 million worth of new preferred units.

At a meeting yesterday MFS unit holders voted overwhelmingly in favour of the three resolutions whereby investment banks Investec Bank (Australia) and NM Rothschild & Sons (Australia) will each take up 10 million unlisted preferred units at $2 each.

The transaction was designed to raise equity more efficiently than via a public raising and was achieved at a lower yield (400 basis points over the three-month bank bill rate) than that being paid on ordinary units

MFS Group chief executive Craig White said the trust would have adequate financial resources to undertake a significant expansion over the next 12 months with the first goal to push assets under management past $200 million.

"It is reassuring the trust has the backing of international institutions like Investec andNM Rothschild," Mr White said.

The MFS Diversified Trust holds a portfolio of 22 properties with a combined asset value of about $160 million with plans to grow total assets to at least $500 million over the next two years.

Earlier this year the trust acquired the shops and marina associated with the Gold Coast Sheraton Mirage for $28.4 million on a yield over 10 per cent.

© 2005 Sydney Morning Herald

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