Garda Diversified Property Fund raised A$25 million following the completion of an institutional placement of 20 million new units priced at A$1.25, representing a 1% discount over the Oct. 3 last traded price of the company's shares.

The office real estate investment trust's largest unit holder, Garda Capital Trust, committed to subscribe for 3.2 million units worth a total of A$4 million, subject to unit holder approval in a scheduled Nov. 23 meeting. The remaining balance will be issued under the REIT's 15% capacity.

Proceeds from the issuance will be channeled toward the partial repayment of Garda Diversified's debt facilities, which will reduce its loan-to-value ratio to 30.8%.

Garda Diversified added that its distribution guidance of 9 Australian cents per unit for the 2019 financial year remains unchanged, with a payout ratio projected to be maintained within the range of 100% to 105%.