Aventus Retail Property Fund's responsible entity, Aventus Capital Ltd., entered an unconditional agreement to acquire two large-format retail properties in Castle Hill and Marsden Park, Sydney, for A$436 million.
The Home Hub centers were purchased from LaSalle Funds Management, as the company seeks to expand in the sub-market after its May 2016 deal with Blackstone Group LP.
Upon completion, the purchase will increase the company's portfolio to 22 large-format centers spread across 1,250,000 square meters of space valued at over A$1.8 billion. Aventus is working toward being the landlord for such properties in Sydney, Aventus Property Group CEO Darren Holland said in a statement.
To partially fund the acquisition, Aventus Capital will undertake an underwritten 1-for-4.3 accelerated nonrenounceable entitlement issue at a fixed price of A$2.32 apiece to raise A$215 million. The balance will be funded via a A$300 million increase in its existing debt facility.
Macquarie Capital (Australia) Ltd. and UBS AG Australia Branch are the underwriters of the equity raising.
As of May 29, US$1 was equivalent to A$1.34.