[Ed. Note – This article does not meet our new editorial guidelines, nor does the company mentioned meet our investment criteria. It will be removed from the site in the future.]
360 Capital Industrial fund (ASX:TIX) declared that its fully underwritten $24.3 million placement of new fully paid ordinary Units in the Fund to Institutional investors has been completed.
How it will be helpful
Mr. Ben Butler, who is the fund manager, said that completion of the Institutional placement successfully has been a good experience, and it is a vital support for the Fund strategy. The portfolio of the company will be improved with the acquisition and the Unitholders will keep getting the earnings over the long term. He said that the support of the existing institutional investor is encouraging, and the new investors are welcomed.
The acquisition complements the Fund’s stated strategy to increase the quality of the portfolio by making acquisitions in major industrial areas.
Around 48.6 million New Units will be issued to the Institutional investors under the Institutional placement at $0.50 per Unit, which was decided by a bookbuild representing forecast FY2014 distribution yield of 9.0 percent.
The completion date of the Settlement under the Institutional Placement is expected to be 24 June 2013. The new units will most probably be issued under the Institutional placement and will be started to trade on Tuesday 25 June 2013.
The rank of the New Units under the Institutional Placement will be the same as the existing unit from the date of issue. The new units, however, will not be available for the June 2013 quarter distribution of 1.125cpu. For the forecast September 2013 distribution of 1.125 cpu, existing and New Units will be ranked.
Moelis Australia Advisory Pty Ltd was the Sole Lead Manager, Bookrunner and Underwriter to the fully underwritten Institutional Placement.
Use of proceeds
The net proceeds were utilized in paying for the two high quality Industrial properties as per the announcement in the Fund’s presentation.
The two properties, which the fund will acquire, are 69 Studley Court, Derrimut, Victoria and 457.
The Fund has entered into unconditional contracts to acquire 69 Studley Court, Derrimut, Victoria and 457 Waterloo Road, Chullora, NSW, (‘Properties’).
The Derrimut property is the latest independent standing office along with the warehouse facility, which was completed in 2009. The office has 27,171 sqm of lettable area along with container –rated hardstand of 7,000 sqm. The Derrimut property is 100 percent leased to Deliver Australia Pty Limited fro 10.3 years. The lease will expire on September 2023. The amount spend to purchase the property is $20.0 million, which is an 8 percent capitalization rate.
The other property is Chullora property, which is a fully renovated office and has warehouse facility. The lettable area of the office is 16,051sqm. This property is 100 percent leased to Elite Logistics Pty Limited. The lease period is 9.7 year, which will expire in February 2023. The amount being paid to purchase the property is $17.2 million, which represents a capitalization rate of 9.25 percent.
The acquisition related settlement is expected to occur before June 30, 2013.
About 360 Capital Industrial
360 Capital Industrial Fund (TIX) is an Australian company that is in the business of property investment and fund management. It has a portfolio of 20 industrial properties across all over mainland Australian states.