Growthpoint Properties plans to maintain is 14.5 per cent stake in APN Industria REIT (ADI). Source: APN Industria REIT
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  • Growthpoint Properties (GOZ) will acquire shares worth $50.87 million in APN Industria REIT (ADI) to maintain its 14.5 per cent stake
  • The company plans to purchase 14.74 million ADI shares at an issue price of $3.46 per security
  • The securities will be offered as part of ADI’s equity raising announced last Thursday.
  • Shares in GOZ are down 3.07 per cent to $4.10 while ADI is 0.14 per cent lower at $3.48 at 2:22 pm AEST

Growthpoint Properties (GOZ) has announced its plans to purchase 14.74 million stapled securities in APN Industria REIT (ADI) for a total of $50.87 million at an issue price of $3.45 per security.

This amount will retain the group’s 14.5 per cent stake in ADI, with the purchase to be funded using existing financing arrangements.

The securities will be offered as part of ADI’s equity raising, which includes an institutional placement and an institutional rights offer, announced last Thursday.

A portfolio of 51 industrial properties and development opportunities for $368.2 million with a blended starting yield of five per cent will be partly funded through the rasing.

ADI successfully completed the institutional placement and institutional entitlement offer last Friday, with fund manager Alex Abell praising the strong investor interest received from the REIT’s existing investor base, as well as new domestic and global institutions.

Growthpoint managing director Timothy Collyer said the company was pleased to be maintaining the group’s strategic position as a major security holder.

“The group has held a significant holding in ADI since 2017 and is pleased with how ADI has performed over this period, returning an ungeared internal rate of rate (IRR) of approximately 19.8%,” he said.

“This transaction further strengthens ADI’s portfolio, substantially increasing its exposure to high-quality industrial assets and providing attractive development opportunities.

“ADI has reaffirmed its FY22 distribution guidance, which reflects an attractive 5.0 per cent distribution yield for ADI’s security holders on the issue price.”

Mr Collyer said the group was increasing its exposure to Australian industrial assets to approximately $1.6 billion.

“This includes our $1.5 billion industrial portfolio, which has a weighted average capitalisation rate of 5.2%, high occupancy of 98% and a weighted average lease expiry of 4.7 years, as at 30 June 2021,” he said.

“Since then, we have continued to see unprecedented international and domestic investor appetite for industrial assets, supported by strong occupier demand, which has led to further capitalisation rate compression across the sector.”

The new securities are anticipated to be settled on October 6, 2021.

Shares in GOZ were down 3.07 per cent to $4.10 while ADI was 0.14 per cent lower at $3.48 at 2:22 pm AEST.

GOZ by the numbers
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