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Centuria Industrial Acquisitions
December 4, 2018
Centuria Industrial REIT, has acquired two industrial assets for a combined value of $54.4 million and announced an underwritten accelerated non-renounceable entitlement offer to raise approximately $51.0 million to partially fund the acquisitions.
The two assets are;
149 Kerry Road, Archerfield QLD , and
155 Lakes Road and 103 Stirling Crescent, Hazelmere
149 Kerry Road, Archerfield is 100% leased to Bluescope Steel Limited and has a low site coverage ratio of 31% providing flexibility to accommodate current and or future tenant requirements. The property has a 6.1yr WALE. The property is located with good access to infrastructure connections including the Acacia Ridge Rail Terminal. The site was purchased for $30.6M from the related Centuria Metropolitan REIT as part of the on market process at a 6.0% cap rate.
155 Lakes Road and 103 Stirling Crescent, Hazelmere is an industrial unit estate comprising two freehold titles, with a low site coverage ratio of 17%. The property is considered strategic for both of its tenants, which are subsidiaries of blue-chip ASX-listed tenants. The WALE is 1.6yrs. The property is a unique metropolitan site with road train access and is well located in close proximity to key infrastructure including the Perth Airport. The asset was acquired for $23.8M on a 6.75% cap rate.
To partially fund the acquisitions, CIP is undertaking a 1 for 13.5 accelerated non-renounceable entitlement offer to raise approximately $51.0 million.
The Issue Price of $2.77 per unit represents a:
3.1% discount to the last close price of $2.86 on 3 December 2018;
2.8% discount to the 5-day VWAP of $2.85 on 3 December 2018;
6.7% FY19 forecast distributable earnings yield; and
6.6% FY19 forecast distribution yield.
New units issued under the Equity Raising will rank equally with existing units from the date of issue and will be entitled to the full distribution for the quarter ending 31 December 2018, expected to be 4.6 cents per unit.