- Irongate (IAP) looks to raise $50 million to purchase a WA industrial park and a 50 per cent interest in an office building in Victoria
- The placement will see the company issue over 32 million shares at $1.55 per share, a 6.3 per cent discount to the last closing price
- Irongate has now entered a trading halt while it undertakes and completes the capital raise
- Under the halt, company shares will be paused until Monday, December 13, or when further information about the raise is released
- On the market, Irongate last traded at $1.66 per share
Irongate (IAP) is looking to raise $50 million to purchase a WA industrial park and a 50 per cent interest in an office building in Victoria.
The placement will see the company issue over 32.2 million shares at $1.55 per share, a 6.3 per cent discount to the last closing price.
Bibra Lake property
Irongate will buy a property based in the southern suburb of Bibra Lake for $26 million from Desmar Holdings.
The property covers an area of 16,861 square metres across eight warehouses with 296 car bays and is located 16 kilometres south of the Perth CBD.
The property was recently built in 2015 and provides excellent industrial accomodation.
CEO Graeme Katz commented on the purchase.
“We have been able to secure the property off-market at an acquisition yield of 5.8 per cent, which provides an attractive spread to the eastern seaboard states, where industrial assets are currently commanding yields of four to – 4.75 per cent,” Mr Katz said.
“Recent transactions indicate that this spread will compress as investors shift their focus to the higher yields on offer in the Western Australian industrial market.”
Cremorne property
Irongate will also purchase a 50 per cent stake in an A-grade office building in Cremorne, for $130 million.
The brand new building has nine levels of office accommodation, ground floor retail and 145 car parks which will reportedly achieve a 5-Star NABERS Energy Rating and a 5-Star Green Star Design Rating.
“The Cremorne Property provides us with an opportunity to improve the overall quality of the portfolio in a market we are familiar with,” Mr Katz said.
“The property was developed by Alfasi Group who will maintain a 50 per cent interest in
the property alongside IAP.”
Irongate is currently in a trading halt while it completes the capital raise with the halt expected to last until Monday, December 13.
On the market, Irongate last traded at $1.66 per share.