This article is from the Australian Property Journal archive
GROWTHPOINT Properties Australia has become the latest REIT to undertake a major capital raising, hoping to secure $150 million from investors for the purchase of a Sydney office tower and furthering its expansion and redevelopment projects.
Underwritten by JPMorgan, the raising is being issued $3.97 per security, at a 4.2% discount to its last closing price.
It will be undertaken alongside a non-underwritten security purchase plan to raise up to $15 million.
Growthpoint said the raising would provide capacity to “acquire a modern building located in metropolitan Sydney for approximately $50 million”, for which it is in advanced stages of due diligence, and provide additional funding for its development and expansion opportunities.
These include a new 19,300 sqm office building in Melbourne’s Richmond; an expansion of the Woolworths Distribution Centre in Gepps Cross, Adelaide; and redevelopment of a 25-hectare industrial site in Broadmeadows.
The group is looking to maintain its gearing near the lower end of its target range of 35% to 45%. Earlier this month, it upgraded its full-year funds from operations guidance, which will not be impacted by the raising.
The group also announced it has renewed ANZ Bank as a tenant across 13,744 sqm – accounting for 2.3% of total portfolio income – in a new six-year lease at its South Melbourne offices, after the major lender exercised its option.
Yesterday, Cromwell completed its $375 million raising announced during the week, while GPT has just undertaken a successful $800 million raising to boost its interest in the Darling Park 1 & 2 and Cockle Bay Wharf commercial projects, as well as furthering its industrial and logistics portfolio.
And earlier this week, National Storage REIT also raised $170 million to help fund its acquisitions.
They followed Mirvac undertaking a $750 million capital raising earlier this month to fund $2 billion worth of “advanced acquisition opportunities”, and Dexus raising $900 million to partially fund its record-breaking $1.476 billion acquisition of 80 Collins St in Melbourne’s CBD.
