CMA – Successful completion of entitlement offer and property transactions

11 January 2018

Successful completion of entitlement offer and property transactions

Centuria Property Funds Limited (CPFL), as Responsible Entity of Centuria Metropolitan REIT , has announced:

  • Successful completion of the accelerated non-renounceable entitlement offer (Entitlement Offer) announced on 5 December 2017, raising approximately $60 million
  • Settlement of two property acquisitions and one divestment on 21 December 2018.

Completion of entitlement offer

The retail component of the offer (Retail Entitlement Offer) closed on Wednesday, 20 December 2017 and was strongly supported, raising approximately $33.9 million at the offer price of $2.39.

This follows the successful completion of the institutional component of the Entitlement Offer which raised approximately $26 million.

Under the Retail Entitlement Offer, eligible retail securityholders were able to apply for their entitlement as well as additional new units beyond their entitlement up to a maximum of 50% of their entitlement (Additional Securities). The Retail Entitlement Offer was well supported by existing retail securityholders who took up approximately $18 million representing a participation rate of approximately 53% (including applications for Additional Securities and applications by retail securityholders who applied early and were allotted new securities on the same day as securities were allotted under the institutional component of the Entitlement Offer).

 

Settlement of Recent Transactions

CMA is pleased to confirm that it has settled on the following transactions:
77 Market Street, Wollongong, NSW:
Settled on 30 November 2017 for an acquisition price of $33.3 million1 reflecting a passing yield of 7.5% and a capitalisation rate of 7.3%

201 Pacific Highway, St Leonards, NSW
Settled on 21 December 2017 for an acquisition price of $85.8 million1,2, reflecting a passing yield of 6.6% and a capitalisation rate of 6.5%

44 Hampden Road, Artarmon, NSW
Settled on 22 December 2017 for a sale price of $10.3 million1 generating a 14.4% premium to book value and an 18.4% annual IRR over CMA’s ownership period.

1 Excludes transaction costs.
2 50% interest with Centuria Capital Group.