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  • APN Industria REIT (ADI) set to acquire interests in a portfolio of 51 industrial properties and development opportunities for approximately $368 million
  • Acquisitions and transaction costs will be partially financed by a $350 million fully underwritten stock offering with a set issue price of $3.45 per security
  • Citigroup Global Markets Australia and Macquarie Capital have fully underwritten the raising
  • Shares in ADI are sitting on $3.74 in a trading halt

APN Industria REIT (ADI) set to acquire interests in a portfolio of 51 industrial properties and development opportunities for approximately $368 million, partly funded through a $350 million equity raise.

The acquisitions include ventures with parent company Dexus, with ADI to acquire a 33.3 per cent interest in Jandakot Airport in Perth and a 50 per cent interest in Lot 2, 884-928 Mamre Road, Kemps Creek, NSW, a 42,515sqm fund through development project to be delivered in May 2023.

ADI is set to acquire a 100 per cent interest in 2 Maker Place, Truganina, Victoria, a 30,364sqm logistics facility fully leased to Australia Post, with adjoining developable land.

The property is being purchased at a 4.1 per cent passing yield and comes with a 4.3-year weighted average lease expiry (WALE), a five-year extension option, and fixed three per cent rent reviews.

The acquisitions consist of a mix of properties with a blended starting yield of five per cent and a WALE of 7.2 years.

Acquisitions and transaction expenses will be partially financed by a $350 million fully underwritten stock offering with a set issue price of $3.45 per security, representing a 6.7 per cent discount to the distribution-adjusted last close price of $3.70.

The raise will comprise of an institutional placement to raise roughly $100 million and a one-for-three non-renounceable entitlement offer to raise approximately $250 million.

Remaining acquisition and transaction expenses will be paid for with current and new bank loan facilities.

The payout for the quarter ending September 30, 2021, stated at 4.325 cents per security, will not apply to new securities issued under the equity raising.

Citigroup Global Markets Australia and Macquarie Capital have fully underwritten the raising.

Dexus, as ADI’s fund manager and largest security holder, plans to exercise its entire right under the entitlement offer, as well as giving a pledge to sub-underwrite up to $39 million of the offer.

APN Industria REIT fund manager Alex Abell said the transaction represents an opportunity 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 takeup between now and 2025,” he said.

“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 kept its FY22 distributions guidance unchanged at 17.3 cents per security.

Shares in ADI are sitting on $3.74 in a trading halt.

ADI by the numbers
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