Hotel Property Investments (ASX:HPI) raised $50 million to partially fund the acquisition of Edwardes Lake Hotel in Melbourne for $28 million and a second asset for $7.9 million, subject to approval.
The investment group also plan to pay $38.8 million to its major tenant, Queensland Venue Company to modify leases and standardise lease agreements across its portfolio, in exchange for increased rent.
The funds were raised through an institutional placement to shareholders yesterday. Approximately 14.7 million new shares will be issued at $3.40 per share while the company also plan to raise an additional $10 million through a security purchase plan.
Shares in Hotel Property Investments (ASX:HPI) are trading 4.5 per cent lower at $3.38.
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