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GARDA announces rights issue
Posted on Monday, 13 November 2017 10:38
GARDA Diversified Property Fund has announced a rights issue worth about AUD 30.00 million (USD 22.98 million) through a non-renounceable entitlement offer.
Under the terms, the Australian Securities Exchange-listed entity is issuing about 26.12 million new units, which account for 18.9 per cent of its enlarged capital, on a 1.00 for 4.30 basis.
The fund has set the offer price at AUD 1.15 apiece and aims to allot the securities on 20th December 2017.
Managed by Garda Capital, the entity currently holds six commercial assets and two industrial properties in the Australian states of Queensland and Victoria.
Its largest property by value is 7-19 Lake Street, a commercial office building in Cairns with tenants such as government organisations, accountancy firms and financial institutions.
Other assets include a Brisbane-located facility, which will be rented by car maker Volvo as a service warehouse, office space and show room, and dealership delivery centre under a ten-year lease.
GARDA Diversified yielded funds from operations of AUD 10.73 million in the 12 months ended 30th June 2017, up from the AUD 9.08 million recorded in the previous year.
Driven by the fair value appreciation of its investment properties, profit for the period totalled AUD 20.12 million, compared to AUD 17.86 million in 2016.
Proceeds from the capital increase will be used for short term debt reduction and the acquisition of a AUD 9.67 million site in Richmond, Melbourne.
After purchasing the property, GARDA Diversified plans to develop a new office building, which will be known as Botanicca 9, on the land parcel.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 40 deals targeting lessors of non-residential buildings in Australia announced since the beginning of this year.
The largest of these was Dexus Property Group’s AUD 500.00 million fundraising, which completed in June.
© Zephus Ltd