Vicinity Centres' property in Chadstone, Victoria. (Photo: Google Maps)

Vicinity Centres has decided to not to pay any distribution for the six months ending 30 June 2020 to further strengthen the REIT’s balance sheet.

The REIT is also undertaking a fully underwritten institutional placement to raise AUD1.2 billion.

It will also undertake a non-underwritten security purchase plan to raise up to a further AUD200 million.

The move has come amid a fall in the value of the REIT’s properties, which may decline in the order of 11% to 13%, or AUD1.8 billion to AUD2.1 billion, since the COVID-19 outbreak.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.