The Board of Pacific Industrial & Logistics REIT (PILR) announced a potential placing of new Ordinary Shares to raise gross proceeds of up to €124.9m (£110m) to fund pipeline acquisitions.
The Company is proposing to raise gross proceeds of up to €124.9m (£110m) by way of the Placing which will be conditional upon, inter alia, approval by Shareholders. The Ordinary Shares to be issued pursuant to the Placing will not be eligible to receive the dividend in respect of the period from 1 October 2016 to 31 March 2017 of 3.0 pence per Ordinary Share which was announced by the Company on 23 May 2017 and which will be paid on or around 28 July 2017 to Shareholders who were on the register on 2 June 2017. In all other respects, the Ordinary Shares to be issued pursuant to the Placing will rank pari passu with the Company's existing Ordinary Share capital by reference to a record date on or after the date of Admission.
The Company is currently engaged in various stages of negotiations on potential acquisitions that meet the investment objective and investing policy. Within the opportunities currently being considered, the Company has commenced negotiations on a number of portfolios of well-located regional logistics assets that are available to acquire in separate off market transactions. The aggregate gross acquisition cost of approximately €193.1m (£170m) reflects a blended Net Initial Yield of 7.2%. The Directors believe there is significant potential to grow rents and lengthen leases over the medium term. The portfolios have strong existing tenant bases, are fully occupied, have a WAULT of 5.6 years and offer attractive reversionary potential.
Nigel Rich, Non-Executive Chairman of Pacific Industrial & Logistics REIT said: "Since listing in April 2016, we have delivered on our objectives by establishing a strong platform of assets that is delivering significant capital and income growth. Having successfully deployed the monies raised at IPO and at the subsequent equity raise, we see a compelling opportunity to significantly expand the scale of our business through a pipeline of off-market acquisitions, enhancing the Company's ability to deliver target returns whilst benefitting Shareholders by reducing the total expense ratio."