News

Significant property acquisition and $125 Million equity raising

3 June 2014

Growthpoint Properties Australia (“Growthpoint”) today announces that it has exchanged contracts for the acquisition of the New South Wales Police Headquarters in Parramatta (“Acquisition”)1. The Acquisition will be funded by an equity raising of $80 to $125 million and, depending on equity take-up, $131 to $176 million from expanded existing debt facilities.

Growthpoint also confirms its full year FY14 distributable earnings and distribution guidance and provides guidance for FY15.

Highlights

  • Acquisition of the NSW Police Headquarters in Parramatta for $241.1 million2
  • Rights issue to raise up to $125 million at an offer price of $2.40
  • Existing debt facility limit increased by $100 million3
  • Full year FY14 distribution guidance remains at 19.0 cents per stapled security
  • Distributable income guidance for FY15 of 20.3 to 20.6 cents per stapled security
  • Distribution guidance for FY15 of 19.7 cents per stapled security
  • At the offer price, new stapled securities are expected to provide a FY15 DPS yield of 8.2%4

Acquisition of NSW Police Headquarters

Summary of key metrics for the Acquisition:

  • Purchase price: $241.1 million1
  • FY15 yield: 7.6%
  • Weighted average lease expiry (“WALE”): 10 years5 with a further 5 year option
  • Rent increases: Fixed 3.5% increases per annum, with adjustments made quarterly
  • Independent valuation: Colliers have valued the property at $241.1 million as at 30 June 2014


For further information about the Rights Offer and the Acquisition please download the following documents


Notes

  1. The contract is subject to a number of conditions including entering into deeds with the tenant and third parties. These are expected to be satisfied prior to 30 June 2014.
  2. Excluding acquisition costs. Under the lease, Growthpoint also assumes responsibility for a $6 million contribution to works at the property which the tenant can call on from June 2019.
  3. The increased debt facility remains subject to execution of a number of ancillary documents.
  4. Based on guidance of 19.7 cents per stapled security.
  5. As at 31 May 2014.