- Property investors Centuria (CNI) is looking to raise $100 million to assist in purchasing two office buildings in Sydney and Perth’s CBDs
- CNI will commit $37.5 million to Centuria Metropolitan REIT (CMA), who is making the purchase
- CMA is seeking to raise $273 million to help with purchase costs
Property investors Centuria (CNI) is looking to raise $100 million to assist in purchasing two office buildings in Sydney and Perth’s CBDs.
The buy will be on behalf of Centuria Metropolitan REIT (CMA), and the company is committing $37.5 million to the purchase as CMA’s largest unitholder.
“Centuria’s commitment to the CMA equity raising is aligned to our strategy of supporting platform expansion across out real estate division,” Joint CEO John McBain said.
Additional funding raised by CNI will be used to increase the company’s working capital.
Following the acquisition, the company’s financial assets will be increased to $6.5 billion.
The total cost for the buildings is reportedly $380.5 million. CMA is seeking $273 million from a capital raise to help finance the purchase.
A full interest will be gained in William Square in Northbridge, Western Australia and a 50 per cent interest will be gained in 8 Central Avenue, Eveleigh, New South Wales following the purchase.
CNI’s capital raise will issue shares at $2.10 per share, and CMA’s equity raising will issue shares at $2.86 each.
Shares in Centuria remain worth $2.18 apiece after requesting a trading halt this morning for until Friday.
CMA has requested a trading halt until tomorrow. Shares in the company are currently valued at $3.00 apiece.