By James Atkinson
A $40 million capital raising by pub landlord ALE Property Group was oversubscribed with significant demand from both existing and new institutional investors, the company said.
ALE managing director Andrew Wilkinson said the successful capital raising will lead to the simplification of ALE's hedge arrangements, providing for stable distribution growth.
In documents released to the ASX, ALE said the capital management initiatives will also strengthen its balance sheet for future growth as well as capturing "historic low base rates".
ALE, which owns 87 freehold hotels that are leased to ALH Group, said its outlook remains positive with "robust property fundamentals and a strongly performing, high credit quality tenant".