Property For Industry has bought nine properties for $69.5 million to extend the average lease term of its existing portfolio and acquire development opportunities in the future, and will pay for the deal through a discounted rights issue.
The Auckland-based company adds eight industrial properties and one head office to its existing $1.1 billion portfolio of 83 properties, which will increase the weighted average lease-term to 5.4 years from the current 4.8 years, it said in a statement.
The deal won't add to earnings, with PFI affirming guidance for distribution profit of 7.7-to-7.9 cents per share, however two-yearly rent reviews offer the chance of increased revenue in the future and low site coverage provides "significant medium to long-term development potential".
PFI will fund the deal through a fully underwritten pro-rata renounceable rights issue to raise $70 million.
Eligible shareholders will be entitled buy one share for every 10 held at the close of trading on Oct. 12 at a price of $1.54 apiece, a 7.1 percent discount to a theoretical ex-rights price based on yesterday's closing price of $1.67.