Commonwealth Property Office Fund
(ASX:CPA) is gearing up to raise $274 million to purchase three office buildings in Melbourne’s central business district. The property firm will buy the buildings from Grocon Pty Ltd for $581.4 million.
The issue includes a $159 million fully underwritten share placement to institutional investors as well as a $115 million accelerated renounceable entitlement issue at 86 cents per unit.
Fund manager Charles Moore says the acquisition is a strategic one and consistent with the company’s long term strategy of owning high quality Australian CBD office assets with attractive total return metrics and income certainty.
Commonwealth Property Office has placed its shares in a trading halt until Monday as it plans for the capital raising. The fund’s shares last traded at 90 cents.
Commonwealth Property Office Fund booked a profit of $114.25 million in the year to 30 June.
