- Australian real estate investment trust APN Convenience Retail REIT (AQR) looks set to raise $35 million to buy 12 service stations across the country
- The cost of all the service stations together is $75.3 million and each is supported by long leases to high-quality tenants
- To pay for the purchases, AQR is aiming to raise $30 million through a placement and a further $5 million via a share purchase plan (SPP)
- Under the capital raise, AQR shares will be issued at a price of $3.55 each, which represents a 2.7 per cent discount to the last closing price
- AQR entered a trading halt this morning and last traded for $3.65 on December 7
APN Convenience Retail REIT (AQR) is looking to raise $35 million to purchase 12 service stations across the country.
The company has entered into sale agreements to purchase three service stations and is in due diligence on a further nine assets.
The cost of all the service stations is $75.3 million and each is located across South Australia, New South Wales, Queensland and Western Australia.
All of the stations are supported by long leases to high-quality tenants with an average lease expiry of 16.4 years.
To pay for the purchases, AQR is looking to raise $30 million through a placement and a further $5 million via a share purchase plan (SPP).
Company shares will be issued at a price of $3.55 each, which represents a 2.7 per cent discount to the last closing price of $3.65 per share.
Under the SPP, eligible shareholders will be able to purchase up to $30,000 worth of shares.
“The acquisitions provide AQR with an outstanding opportunity to acquire a balanced portfolio of established operating sites and newly built assets which enhances AQR’s overall portfolio scale and lease expiry profile,” AQR Fund Manager Chris Brockett said.
“The acquisitions provide the opportunity to enter into locations currently under-represented within the portfolio and further improve geographic and tenant diversification,” he added.
AQR entered a trading halt this morning, meaning shares will be paused until tomorrow, December 9.
Shares in the REIT last traded for $3.65 on December 7.