- Centuria Industrial REIT (CIP), through Centuria Property Funds, is aiming to raise $125 million to purchase three high-quality cold storage facilities for $171 million
- The placement will be priced at $3.06 per share, which is a 2.9 per cent discount to Monday’s closing price of $3.15 per share
- The facilities are located in Sydney, Melbourne and Brisbane and are all occupied with a weighted average lease expiry of 6.4 years
- The new purchases are expected to be settled by early December
- CIP is in a trading halt and last traded for $3.15 per share on November 16
Centuria Industrial REIT (CIP), through Centuria Property Funds, has agreed to purchase three high-quality cold storage industrial facilities for $171.1 million.
The facilities are all occupied and have a weighted average lease expiry of 6.4 years.
To pay for this purchase, the company is aiming to raise $125 million at $3.06 per share, which is a 2.9 per cent discount to Monday’s closing price of $3.15 per share.
For the remaining balance, CIP will draw down $58.7 million in debt. The placement is being underwritten by JP Morgan and Moelis Australia.
The purchase price represents an average initial yield of 5.62 per cent.
The three assets are located in core industrial markets, namely Sydney, Melbourne and Brisbane and have excellent connectivity to distribution networks.
“The east coast, cold storage portfolio acquisition leverages a key growth thematic for CIP in the non-discretionary, food and pharmaceutical distribution and refrigerated logistics industries,” Fund Manager Jesse Curtis said.
“These industries are experiencing strong tailwinds underpinned by a rapid increase in online food sales creating favourable supply and demand dynamics,” he added.
The purchase confirms CIP’s position as Australia’s “largest listed pure-play industrial and logistics portfolio”.
The new purchases are expected to be settled by early December.
CIP has entered a trading halt today, meaning shares will be paused until Thursday, November 19, or when the company completes the capital raise.
Company shares last traded for $3.15 per share on November 16.