Arena REIT Group Announces New Equity Raising Activity
June 2, 2020 — Arena REIT Group announces it is undertaking a fully underwritten A$50 million institutional placement at an issue price of A$2.28 per new Stapled Security to provide capacity to pursue further social infrastructure property investments.
It will also offer a non-underwritten Security Purchase Plan (SPP) to eligible securityholders to raise up to A$10 million.
The proceeds of the equity raising will be used by Arena to provide capacity to pursue further social infrastructure property investments. Post the Institutional Placement, Arena’s pro forma 31 December 2019 gearing will reduce to 17.6%4.Arena has a track record of deploying capital in a disciplined manner and this equity raising provides capacity to continue with Arena’s investment objective to provide predictable distributions with earnings growth prospects over the medium to long term.
Over the last 3 years, Arena has, on average, deployed approximately $75m per annum into developments and acquisitions. Since IPO (June 2013), Arena has actively managed its portfolio, completing 37 operating asset acquisitions, completed (or has in progress) 56 development projects and disposed of 26 assets to support growth and enhance portfolio quality.
The equity raising positions Arena to continue its growth strategy across the social infrastructure sector, by investing in opportunities via development and acquisition that exhibit some or all of the following investment characteristics:
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