Equity Fundraises are a means of strengthening a given property’s financial position and provide the means by which shareholders can voluntarily protect their interests in light of difficult market conditions. This is done through new equity investment from shareholders (existing and new) of property SPVs, in return for the issue of new shares. Funds are raised to pay down mortgage debt and cash deficits (where applicable), while units are sold in an orderly fashion to further pay down debt. Properties in question require additional capital on account of uneconomical mortgage debt, in light of significant interest rates rises.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.