GLOBAL developer and funds manager Lend Lease plans to direct cash from its proposed $806 million capital raising towards boosting its development pipeline and new investment projects, while tackling any recent debt concerns from credit ratings agencies.
Upon allocation of the funds, a forecast improvement in the Australian residential business and a bottoming in the US and British economies, the group expects a full-year result in line with 2009's $307 million.
Lend Lease chief Steve McCann said the fully underwritten capital raising would be via a renounceable five-for-22 pro rata entitlement offer through Merrill Lynch and RBS.
The well-flagged raising was announced yesterday at the same time as the group's interim results, which showed a net profit of $204.9 million to December 31, up from a loss of $596.4 million in the previous corresponding period. Taking into account investment revaluations, the profit was $187.9 million, up from $185.4 million for the same time last year. Investors received an interim dividend of 20¢ per security.
