Deutsche Industrial Trust, a subsidiary of the Deutsche Bank´s DB Real Estate, has today entered into contracts to acquire three properties. DIT will pay $86.17million in total for the properties.
â€œThe transaction is another significant step for the Trust,â€ said General Manager of DIT, Ben Lehmann. â€œBased on the prospectus we have lodged today, net profit for the year to 31 December 2002 is forecast at $43.4 million which is an increase of 36% over the previous year.
Also the Trust´s market capitalisation will have increased by in excess of 30% in the same twelve months based on a unit price for the Trust of $1.62 per unit and the additional underwritten equity component ($53 million).'
The Trust will fund the acquisition of the new properties via:
a $19.26 million underwritten Institutional Placement at a price of $1.62;
a non-renounceable Priority Entitlement Offer to existing unitholders of 1 unit for every12 units held as at 25 November 2002 at a price of $1.62 per unit, which will be underwritten to $33.74 million; and
additional debt funding of $39.50 million and cash of $1.3 million.
According to Mr Lehmann the acquisitions will significantly enhance the Trustâ€™s portfolio in terms of geographic and tenant diversification. â€œThe acquisition will extend the Trustâ€™s weighted average unexpired lease term from 4.0 years to 4.5 years. The properties provide the Trust with further exposure to strong rental growth over the medium to long-term via structured rental reviews.'
(source: DB Real Estate Australia)