Stockland acquires 5pc of FKP11:46, Wednesday, 15 October 2008...

Stockland acquires 5pc of FKP
11:46, Wednesday, 15 October 2008

Sydney - Wednesday - October 15: (RWE Aust Business News) -
Stockland (ASX:SGP) has acquired a 5.0 per cent stake in FKP Property's
(ASX:FKP) stapled securities via a share placement and will acquire a
stake of up to around 13 per cent through partial underwriting of a
rights issue.
FKP will commence a strategic review of its retirement living
assets which could lead to their separation.
Stockland will be granted exclusive dealing for a period of two
months while the review is undertaken and has first right of refusal over
the assets.
Stockland's CEO of residential property, Denis Hickey, will be
appointed to the FKP board.
The initial stake in FKP will be acquired at $2 per security and
Stockland will take up its full entitlement in the rights issue at $1.50
per security.
It may take up further securities.
Stockland will have a stake on completion of a minimum of 10pc
and up to around 13pc for a total outlay of a maximum of $80m.
The acquisition will be funded from Stockland's existing debt
facilities and will increase the gearing ratio by 0.4pc.
The transaction will have a minimal dilutive impact on FY09 EPS.