Melbourne property funds manager APN Property Group Limited
(ASX:APD) has announced plans to raise $16.1 million to fund its investment into a new $378 million real estate investment trust set to list on the ASX.
The equity raising is priced at $0.25 per new share and proceeds will primarily used to fund the acquisition of stapled securities in Industria REIT.
Industria REIT will be managed by a wholly owned subsidiary of APN and the company intends to subscribe for 5 per cent of the total securities on issue.
APN’s Executive Chairman says the equity raising will ensure existing investors can participate while also adding a number of institutional investors to broaden the register.
While the creation of Industria REIT is still subject to approvals and conditions it is expected to offer investors a workspace orientated portfolio.
APN Property Group reported a net profit of $1.4 million in the 2013 financial year.
