Centuria Metropolitan REIT is purchasing the NewActon Nishi office building in Canberra, Australia, for A$256 million.
The property has a net lettable area of 27,411 square meters and a cap rate of 5.1%, with a weighted average lease expiry of 7.9 years, with 99.5% occupancy.
To partially finance the transaction, Centuria Metropolitan will raise A$185 million through a fully underwritten institutional placement. An issue price of A$3.00 per unit represents a 4.8% discount to the last close price of A$3.15 and a 4.7% discount to the five-day volume-weighted average price of A$3.147 on Dec. 9. The placement will have about 61.7 new units to be issued, or about 13.7% of the trust's existing issued capital.
Unitholders in Australia and New Zealand will be called in to subscribe for up to A$30,000 in additional units at A$2.9555 per unit.
Centuria Metropolitan recorded a gross increase of A$30.8 million after it independently re-valued eight among its 22 properties as of Dec. 31.
The trust also reaffirmed its FFO guidance of 19.0 cents per unit and distribution guidance of 17.8 cents per unit for fiscal year 2020.