Growthpoint Properties Australia is pleased to announce that it expects to acquire 14.74 million new stapled securities in APN Industria REIT (ADI) for $50.87 million, at an issue price of $3.45 per security, maintaining the Group’s 14.5% holding in ADI.
Growthpoint will use existing debt facilities to fund the acquisition.
The securities will be issued as part of ADI’s equity raising, comprising an institutional placement and institutional rights offer, which was announced to the market on 23 September 2021. The equity raise will enable ADI to acquire interests in a portfolio of 51 industrial properties and development opportunities for $368.2 million at an estimated average yield of 5.0%.
Settlement of the new securities is expected to occur on 6 October 2021.
Timothy Collyer, Managing Director of Growthpoint, said, “We are pleased to invest further capital into ADI, maintaining our strategic position as a major securityholder. The Group has held a significant holding in ADI since 2017 and is pleased with how ADI has performed over this period, returning an ungeared internal rate of rate (IRR) of approximately 19.8%.
“This transaction further strengthens ADI’s portfolio, substantially increasing its exposure to high-quality industrial assets and providing attractive development opportunities. ADI has reaffirmed its FY22 distribution guidance, which reflects an attractive 5.0% distribution yield for ADI’s securityholders on the issue price.”
“We are pleased to increase Growthpoint’s significant exposure to Australian industrial assets to approximately $1.6 billion. This includes our $1.5 billion industrial portfolio, which has a weighted average capitalisation rate of 5.2%, high occupancy of 98% and a weighted average lease expiry of 4.7 years, as at 30 June 2021. Since then, we have continued to see unprecedented international and domestic investor appetite for industrial assets, supported by strong occupier demand, which has led to further capitalisation rate compression across the sector.”