- Irongate Group (IAP) has completed its $50 million fully underwritten institutional placement
- More than 32 million new fully paid ordinary stapled securities at an issue price of $1.5 per new security
- The company says money raised will partly fund the acquisition of a 50 per cent interest in an office building located in Cremorne, Victoria for a purchase price of $130 million
- New securities will be on the same terms as and rank equally with existing IAP securities from the date of issue
- Irongate shares are down 5.1 per cent to trade at $1.57 at 1:11 pm AEDT
Irongate Group (IAP) has completed its $50 million fully underwritten institutional placement to raise roughly $50 million,
More than 32 million new fully paid ordinary stapled securities at an issue price of $1.5 per new security.
The company says money raised will partly fund the acquisition of a 50 per cent interest in an office building located in Cremorne, Victoria.
The property, situated at 510 Church Street, has a purchase price of $130 million, implying an initial yield of 4.7 per cent.
The new securities will settle on December 14 with allotment and normal trading on the ASX to occur on December 15.
New securities will be on the same terms as and rank equally with existing IAP securities from the date of issue and will be entitled to the distribution for six months to March 31, 2022.
The company says the placement does not require securityholder approval, given it’s within IAP’s existing placement capacity.
Company stapled securities are expected to recommence trading from today.
Irongate Group CEO, Graeme Katz, explained.
“We are very pleased with the strong support we have received from investors and are looking forward to delivering on our strategy of growing IAP’s asset base by investing in good-quality income-producing properties,” he said.
Irongate shares are down 5.1 per cent to trade at $1.57 at 1:11 pm AEDT.