Centuria Industrial REIT successfully raises $130 million

14 April 2020

Centuria Industrial REIT (ASX:CIP), successfully completed a fully underwritten institutional placement announced on 9 April 2020 raising $130 million.

The New Units were issued at a price of $2.62 per New Unit, and the proceeds from the equity raising will be used to further strengthen CIP’s balance sheet and provide funding flexibility to execute CIP’s strategy of owning quality industrial assets located within infill markets close to major infrastructure.

The reduction in pro forma gearing to 27.7%1 will further increase headroom to CIP’s debt covenants increasing the resilience of CIP’s balance sheet whilst providing significant flexibility to pursue opportunities which are complementary to the portfolio.

CIP is also undertaking a non-underwritten unit purchase plan (UPP) to raise up to $10.0 million2.

CIP’s Fund Manager, Mr Jesse Curtis, commented, “This equity raising strengthens CIP’s balance sheet and provides significant liquidity to pursue attractive transaction opportunities to increase the quality of the portfolio, allowing CIP to maintain and extend its position as Australia’s largest pure-play industrial REIT.”

1 Excludes potential proceeds from the non-underwritten UPP
2 CIP may (in its absolute discretion) in a situation where total demand exceeds $10.0 million, decide to increase the amount to be raised under the UPP to reduce or eliminate the need for scaleback. CIP reserves the right to scale back applications under the UPP at its discretion.