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.
“The transaction is another significant step for the Trust,†said General Manager of DIT, Ben Lehmann. “Based 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 Trust’s portfolio in terms of geographic and tenant diversification. “The acquisition will extend the Trust’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)
