Abacus (ASX:ABP) completes $200m institutional placement

• Abacus Property Group (ABP) has raised $200 million via institutional placement, with the funds to be used for future acquisitions
• The placement will issue around 59.2 million new stapled securities at an issue price of $3.38 per piece
• Proceeds from the placement will be used to replenish investment capacity for continued deployment into acquisitions that has not been settled and into identified development and expansion pipeline in its self storage portfolio
• In addition to the placement, Abacus has launched a security purchase plan (SPP) that is set to raise up to $15 million with the same issue price as the placement
• ABP shares are down 5.90 per cent, trading at $3.35 per share

Abacus Property Group (ABP) has raised $200 million via institutional placement, with the funds to be used for future acquisitions.

The placement will issue around 59.2 million new stapled securities at an issue price of $3.38 per piece.

Proceeds from the placement will be used to replenish investment capacity for continued deployment into acquisitions that have not been settled and into identified development and expansion pipeline in its self-storage portfolio.

Abacus’ Managing Director Steven Sewell said that the funds are also “expected to increase free float market capitalisation and improve Abacus’ index ranking and liquidity”.

The new stapled securities issued under the placement are expected to settle on March 22 with allotment and normal trading expected to occur on March 23.

All new shares will rank equally with existing Abacus stapled securities.

The company has also confirmed the placement is within Abacus’ existing 15 per cent placement capacity and does not require securityholder approval.

In addition to the placement, Abacus has launched a security purchase plan (SPP) to provide eligible Abacus security holders in Australia and New Zealand on its register as of March 16 to acquire up to $30,000 of new stapled securities.

The SPP will have the same issue price as the placement and will also rank equally with existing Abacus stapled securities.

The SPP is expected to raise up to $15 million.

ABP shares are down 5.90 per cent, trading at $3.35 per share as of 1:31 pm AEDT.