360 Capital Mortgage REIT has successfully raised $6.4 million through an additional placement of over one million new units, aiming to expand its mortgage loan portfolio and enhance trading liquidity.
- Raised $6.4 million via placement of 1,076,149 new units
- Units priced at $5.94 each under the shortfall offer
- Capital to be invested in registered mortgage loans per Trust strategy
- New units will rank equally with existing units from 22 July 2025
- Placement completed under entitlement offer framework with wholesale investors
Capital Raise Details
360 Capital Mortgage REIT (ASX, TCF) has announced the successful completion of an additional placement of 1,076,149 new fully paid ordinary units under the shortfall offer associated with its entitlement offer. The placement raised approximately $6.4 million at a unit price of $5.94, reflecting continued investor appetite for the Trust’s mortgage-backed investment strategy.
Strategic Use of Funds
The capital raised will be deployed into registered mortgage loans consistent with the Trust’s disciplined approach to credit opportunities secured by Australian real estate assets. This infusion of capital is expected to support the Trust’s growth ambitions while maintaining its focus on delivering regular monthly income to investors through prudent asset selection and risk management.
Implications for Investors
New units issued under the shortfall offer will rank equally with existing units from 22 July 2025, ensuring parity among unitholders. Additionally, the increase in the Trust’s size may enhance trading liquidity, potentially making units more attractive to both current and prospective investors. The placement was conducted under Listing Rule 7.2, Exception 3, allowing the Responsible Entity to issue units to wholesale investors using the remaining capacity under the shortfall offer.
Market Context and Outlook
360 Capital Mortgage REIT’s ability to raise capital through wholesale investors signals confidence in its investment strategy amid a competitive mortgage REIT landscape. The involvement of joint lead managers Ord Minnett, Shaw and Partners, and MST Financial Services underscores the transaction’s significance. Moving forward, market participants will be watching how effectively the Trust deploys this capital and whether it translates into enhanced distributions and portfolio growth.
Bottom Line?
This capital raise positions 360 Capital Mortgage REIT for measured growth, but investors will be keen to see how the new funds translate into performance.
Questions in the middle?
- What is the expected timeline for deploying the $6.4 million into new mortgage loans?
- How might this capital raise impact the Trust’s distribution yield in the near term?
- Will the increased unit base affect liquidity and trading volumes as anticipated?