Australia's Stockland to raise A$1.5 bln-report

SYDNEY, May 13 (Reuters) - Australian property firm Stockland Group (SGP.AX) will announce a A$1.5 billion ($1.1 billion) capital raising as early as Wednesday, the Australian Financial Review newspaper reported.

The paper said the raising, the company's second in six months, will relieve pressure on the balance sheet and provide added firepower as Stockland seeks a merger with rival GPT Group (GPT.AX). It did not give a source for its information.

New shares will be offered at A$2.60-2.70 each, compared with the company's close on Tuesday of A$3.35. Deutsche Bank will lead the issue, the paper said.

A Stockland spokeswoman was not available for comment immediately, while Deutsche Bank declined to comment.

Stockland would join a rush of Australian firms taking advantage of a recovery in equity markets to seek cash as credit markets remain tough to access.

Some $15.4 billion has been raised from new share sales so far in 2009, compared with $41 billion raised in 2008. For a related story, see [ID:nSYD460772]. GPT raised A$1.4 billion earlier this week. (Reporting by Jonathan Standing)