Freehills has recently advised Bunnings Property Management Limited on a $150 million accelerated entitlement offer of units in the Bunnings Warehouse Property Trust. Final settlement of the retail component of the offer was successfully completed on 16 June 2009.
The Trust, which specialises in warehouse retailing properties around Australia, undertook the capital raising in order to strengthen its balance sheet and enhance its financial flexibility.
Freehills Perth-based Partner Andrew Shearwood, who led the team on the transaction, said that accelerated offers were understandably popular at present as they provided clients with a means of accessing capital quickly during favourable windows in a volatile market. However, experience and precision are required on the part of legal and corporate advisers to ensure that demanding deadlines are met.
‘An understanding of the commercial drivers in the client’s business is key to getting the work done within the time constraints, while ensuring that the right questions are asked so that risks of conducting an issue in such a truncated period are minimised,’ Mr Shearwood said.
JP Morgan acted as lead manager and underwriter of the offer, advised by Baker & McKenzie.
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