Centuria Metro $273 Capital Raising

18 September 2019

Centuria Metro REIT announced the acquisition of 2 commercial assets for $380.5M and a fully underwritten capital raising of $273m.


To partially fund the acquisitions, Centuria Metropolitan REIT is undertaking a $273 million Equity Raising, comprising: an underwritten 1 for 10 accelerated non-renounceable entitlement offer to raise $102 million (Entitlement Offer); an underwritten institutional placement to raise $141 million (Institutional Placement); and a conditional placement of $30 million to Centuria Capital Group (CNI), which is subject to CMA securityholder approval (Conditional Placement).


The Issue Price of $2.86 per Centuria Metropolitan security represents a:

  • 3.2% discount to the distribution-adjusted last close price of $2.96 on 17 September 2019 ;
  • 4.0% discount to the distribution-adjusted 5 day VWAP of $2.98 on 17 September 2019;
  • 6.6% forecast FY20 funds from operations (FFO) yield; and
  • 6.2% forecast FY20 distribution yield.


CNI, Centuria Metropolitan's largest securityholder, has committed to take up $37.5 million under the Equity Raising, comprising $30.0 million under the Conditional Placement and $7.5 million in the Entitlement Offer.


Centuria Metropolitan reaffirms FY20 guidance previously provided of:

  • FFO of 19.0 cents per security; and
  • Distribution of 17.8 cents per security.
  • Pro forma gearing is forecast to be 34.9%


Centuria also announced a $100m capital raising for CNI at $2.10 per security to support; Co-investment in CMA in its $380.5 million acquisition of two A-grade office properties note above, plus Increased working capital to support capital management initiatives #Centuria