Property company MFS Diversified has wrapped up its $200 million capital-raising program with a rights issue that has closed oversubscribed.

Last month, institutional investors were quick to snare $170 million worth of securities at 90c each.

Yesterday, MFS Diversified said the retail component of its raising, a one-for-5.5 rights issue at a strike rate of 85c, also had been solidly received.

Chief executive Brent Hailey said the capital raising had armed the company for future acquisitions and demonstrated support from shareholders.

"We've built a solid institutional following which is incredibly pleasing," he said.

Major shareholder MFS Ltd is believed to have accounted for $30 million of the total raising in order to maintain its shareholding in MFS Diversified.

MFS Diversified, a stapled entity that comprises a property development company and a property trust, has undertaken some housekeeping over the past few months.

It has just offloaded a controversial portfolio of 10 retirement villages to Brisbane-bsed SVC.

The capital raising also will allow it to retire debt.

The group's stapled securities closed steady at 90.5c yesterday.

Gold Coast Bulletin - page 37
Wednesday, June 20, 2007