APN's wholly owned subsidiary, APN Funds Management Limited (APN FM) has lodged a Product Disclosure Statement (PDS) with the Australian Securities and Investments Commission relating to the launch of the APN European Retail Trust (Trust), a new property trust to be listed on the ASX. APN FM is the issuer of the units in the Trust.
Under the offer, APN FM seeks to raise approximately A$180 million to partly fund the acquisition of six shopping centers in Europe for approximately A$350 million. The Trust will acquire a 100% interest in a portfolio of six quality retail shopping centers located in Spain and Italy ("Portfolio"). The Portfolio consists of five existing shopping centers offering a diverse mix of non-discretionary, discretionary, leisure and bulky good retailers and an additional retail and entertainment center currently under development in Madrid, Spain the acquisition of which is forecast to be completed at the end of June 2006.
The Portfolio will be acquired for approximately 219 million, a 4% discount to valuation. Approximately 113 million (A$180.1 million) will be raised through the Offer to fund, with debt, the acquisition of the Portfolio. The Portfolio is to be acquired in two tranches.
The offer has been fully underwritten by Merrill Lynch International (Australia) Limited and J.P.Morgan Australia Limited. Settlement of the properties is to occur on 29 July 2005.
Source: APN Property Group
