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Centuria Metropolitan to launch rights issue
Posted on Wednesday, 06 December 2017 07:47
North Sydney-headquartered Centuria Metropolitan REIT has announced a 1-for 8.65 rights issue worth about AUD 60.00 million (USD 45.48 million) to fund acquisitions.
The Australian Securities Exchange-listed group is issuing about 25.10 million new units, which account for 10.4 per cent of its enlarged capital, at AUD 2.39 apiece.
It aims to allot the securities on 28th December 2017 and has appointed UBS and Moelis & Company as underwriters to the transaction.
Centuria Metropolitan is a real estate investment trust (REIT) which invests in metropolitan offices and industrial real estate.
Through its unit Centuria Capital Group, the entity held 18 properties in prime locations throughout Australia with a total value of AUD 760.00 million as of 30th June 2017.
It posted revenue of AUD 41.39 million in the 12 months ended 30th June 2017, up 4.7 per cent on the AUD 39.54 million recorded in the previous year.
Net profit for the period totalled AUD 37.69 million, compared to AUD 44.79 million in fiscal 2016.
With the proceeds, the REIT is planning to spend AUD 119.10 million on two acquisitions in the state of New South Wales: a 50.0 per cent stake in 201 Pacific Highway in St Leonards and the entire holding of 77 Market Street in Wollongong.
The two fully occupied commercial properties are expected to yield a fixed return of 3.0 to 4.0 per cent per annum.
By taking over the St Leonards asset, Centuria Metropolitan’s trust manager Nicholas Blake is hoping to benefit from Sydney’s North Shore’s “tightening vacancy rates, limited supply and strengthening rentals.”
He also described 77 Market Street as “a high-quality, fit-for-purpose building in a well-defined market, anchored by strong commercial tenants.”
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 46 deals targeting lessors of non-residential buildings in Australia announced since the beginning of this year.
© Zephus Ltd