Why the Irongate (ASX:IAP) share price will be on watch today

The Irongate Group (ASX: IAP) share price will be on watch today following the acquisition of an industrial property. Here's the details.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published March 9, 2021 9:49 am AEDT

The Irongate Group (ASX: IAP) share price will be on watch today following the acquisition of an industrial property. The announcement was made after market close yesterday and could have an effect on its shares today.

The diversified real estate investment trust ended Monday's trading session 1.1% down to $1.26.

Young male investor smiling looking at laptop as the share price of ASX ETF CRYP goes higher today — Image source: Getty Images

Irongate share price in focus

The Irongate share price could be on the move today as investors had time to digest the latest release overnight.

In its announcement, Irongate advised that it has entered a contract for sale of land to acquire an industrial facility.

Under the agreement, Irongate will pay a total amount of $24.75 million to the vendors of the property. The purchase consideration and transaction costs will be funded by the company tapping into its existing debt facility.

Built in 2018, the industrial complex is located on Main Beach Road in Pinkenba, Queensland. The building comprises 1,852 square meters of office and warehouse space and 33,165 square meters of paved areas for vehicles. Currently, the property is tenanted to Grays, which is the largest industrial, auto and commercial eCommerce business in Australia. The lease expires in March 2028 and has a fixed annual increase of 3.5%.

The settlement date for the acquisition of the property is expected to occur on 22 March 2021.

What did the CEO say?

Irongate CEO Graeme Katz touched on the deal, saying:

The Property provides IAP with a strategic land holding of almost four-hectares in the Australian Trade Coast Precinct, one of Brisbane's premier industrial locations. Pinkenba is immediately adjacent to Brisbane Airport and the area will benefit from infrastructure upgrades associated with the new Brisbane International Cruise Terminal.

We believe the Brisbane industrial sector currently offers relative value and the acquisition will increase IAP's exposure to industrial property to 32% by both income and value.

The Irongate share price is down just over 10% in the last 12-month period.

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