Valad Property Group (Valad) has altered its financial year growth forecasts by more than 12 per cent, following the completion of its merger with Scarborough.
Valad completed the A$2 billion merger with the UK funds management group yesterday.
As a result, Valad has increased its 2008 financial year forecast dividend per share growth by 12.9 per cent over the announced 2007 financial year distribution.
Valad's executive chairman Stephen Day said the acquisition now provides the group with a pan European property and funds management platform with operations in 11 countries and combined funds under management for the group of A$16.8 billion.
"The successful acquisition of Scarborough provides Valad with a fully integrated pan European platform with over 250 staff across Europe and represents the next step in Valad's stated strategy to establish European and Australasian platforms for its operations and product offerings," Day said.
The acquisition is being funded through the previously announced A$1.2 billion entitlement and public offer. The retail and public offer component closes on 17 July 2007.
The privately-held Scarborough has substantial direct property ownership, funds management and development operations in the United Kingdom and Europe, with A$10.2 billion in assets under management.
Valad is advised by JP Morgan. JP Morgan, Macquarie Bank and UBS are joint bookrunners and underwriters and Citigroup is co-manager.
