Firm advises on $400m capital raising

by |
King & Wood Mallesons acted on the institutional placement, which was fully underwritten by Deutsche Bank AG, Sydney Branch and Goldman Sachs Australia. 

The property group will now undertake a non-underwritten security purchase plan for eligible security holders in Australia and New Zealand.

Leading the King & Wood Mallesons team was partner Susan Hilliard, who has worked with DEXUS since 2007.  Last year, the firm acted for DEXUS and its capital partner on the $2.9bn takeover of CPA, finishing the year as one of the biggest public M&A transactions.

The latest institutional marks the first time DEXUS has been to the market to raise equity capital of this kind, for some time.

“I think the market was keen to see DEXUS back raising capital so that was interesting and also the fact that they are obviously feeling optimistic about future opportunities,” said Hilliard.

While she does not expect that the institutional placement will trigger a gold rush of others coming to the market, Hilliard anticipates further financing of this sort for the rest of the year, and leading into 2016.

"I think investors like to see debt levels lowered in this kind of climate and if there are acquisition opportunities buyers will raise equity,” she said.   “If investors are saying they need them to have lower gearing levels then you see a bit more capital raising.”

Skadden, Arps, Slate, Meagher & Flom LLP advised DEXUS on US securities law matters.  Herbert Smith Freehills and Sullivan & Cromwell LLP advised the underwriters.