The APN Industria REIT (ASX: ADI) share price is frozen due to a trading halt at the company’s request.
ADI, a real estate investment trust (REIT), owns a portfolio of industrial and business park assets across most of Australia’s major capital cities.
The company requested a pause in trading on the ASX pending today’s announcement on major property acquisitions and a proposed equity raising.
What property acquisitions did APN Industria announce to the ASX?
ADI reported it has entered into agreements that will enable it to acquire interests in a portfolio of 51 industrial properties and development opportunities for $368 million.
ADI said its acquisitions include:
- A 33.3% interest in Jandakot Airport, located in Perth, Western Australia. The industrial portfolio includes 49 properties, roughly 80 hectares of developable land, and a general aviation operating business
- A 100% interest in 2 Maker Place, Truganina, Victoria. This is a 30,364 square metre logistics facility fully leased to Australia Post. It also has adjoining developable land
- A 50% interest in Lot 2, 884-928 Mamre Road, in Kemps Creek, New South Wales. This is a 42,515 square metre fund-through development project to be delivered in May 2023.
Dexus will own the other 66.7% interest in Jandakot and will acquire the remaining interest in Kemps Creek.
Commenting on the acquisitions, APN Industria REIT fund manager, Alex Abell said:
This transaction represents a compelling opportunity for Industria to achieve transformational growth and deploy capital into assets with significant value creation opportunities. The acquisitions capitalise on the strong momentum in the industrial sub-sector, with growing ecommerce take-up in Australia set to drive approximately 2.4 million square metres of industrial space take-up between now and 2025 …
The acquisitions also introduce a significant development pipeline that has the potential to deliver future value upside through further leveraging Dexus’s fully integrated platform.
ADI said it will partly fund the acquisitions via a fully underwritten $350 million equity raising. The new shares will have an issue price of $3.45. This is some 8% less than yesterday’s closing price of $3.74 per share.
The equity raising comprises a $100 million institutional placement and a $250 million 1-for-3 non-renounceable entitlement offer. The remainder will be funded via existing and new bank debt facilities.
Dexus reported it plans to take up its full $40 million under ADI’s Entitlement Offer and provide a commitment to sub-underwrite up to approximately $39 million.
ADI share price snapshot
The ADI share price is up 31% year to date compared to 10.5% for the All Ordinaries Index (ASX: XAO).
Over the past month, the APN Industria REIT share price has risen 4%.