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18-06-2021, 01:41 PM
#1041
Member
Precinct have a share placement.
OFFER: PCT: PCT $250m Equity Raise to fund Wellington acquisitions
PCT
18/06/2021 08:41
OFFER
PRICE SENSITIVE
REL: 0841 HRS Precinct Properties New Zealand Limited (NS)
OFFER: PCT: PCT $250m Equity Raise to fund Wellington acquisitions
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) is pleased to
announce a $250 million equity raise to fund the acquisition of two
Wellington office buildings through an underwritten $220 million Placement
(Placement) and a non-underwritten Retail Offer of up to $30 million with the
ability to accept oversubscriptions at Precinct's discretion (Retail Offer)
(together, the Equity Raise).
The proceeds from the Equity Raise will be used to fund the acquisition of
two Wellington office assets, Bowen House and the Freyberg Building, and
reduce Precinct's gearing providing additional funding capacity to assist
with future development opportunities. Following the two Wellington
acquisitions and the recently announced draft full year revaluation gain of
$284 million, FY21 year-end gearing is expected to be around 29%.
Scott Pritchard, Precinct's CEO, said "Precinct raising $250 million of
equity will fund the acquisition and redevelopment of Bowen House in
Wellington. We are also undertaking due diligence on the Freyberg Building in
Wellington and expect to complete the acquisition imminently. The Wellington
market continues to show strong demand for prime grade office, underpinned by
an increase in the public sector workforce. We are seeing solid rental growth
and very low levels of prime vacancy. We believe Precinct is well positioned
to leverage its Wellington office accommodation offering, as demonstrated by
the successful pre-leasing of 40 & 44 Bowen Street from both the corporate
and public sector."
Today, Precinct has also announced that the Board expects dividend guidance
for the 2022 financial year of 6.70 cps. This represents 3.1% year-on-year
growth in dividends to shareholders.
Details of the Wellington acquisitions:
Precinct has entered into an agreement to acquire Bowen House in Wellington.
This high profile office building is situated in the heart of the government
precinct at the northern fringe of the CBD and is in close proximity to
several of Precinct's existing assets. The 14,000 square metre tower
comprises 23 levels of office space, ground floor retail tenancies, an entry
lobby to the Beehive via a subterranean link, and carparking.
Precinct will pay $92 million and undertake a comprehensive redevelopment of
the building at an estimated cost of around $57 million. The redevelopment
will include seismic strengthening (to 100% NBS) and refurbishment works. On
completion of works in mid 2023, Bowen House will be fully occupied by The
Parliamentary Services on a new 15-year net lease. The acquisition is
expected to yield 5.25% on completion of the works and is expected to settle
in July 2021.
Commercial terms have also been agreed for the acquisition of the Freyberg
Building in Wellington. This is a strategic redevelopment opportunity located
in the Government precinct and remains conditional at this stage on Precinct
due diligence. On completion of the acquisition, Precinct anticipates
progressing with design for the redevelopment while benefiting from holding
income.
Details of the Equity Raise:
The $250 million Equity Raise comprises an underwritten Placement of
approximately $220 million and a non-underwritten Retail Offer of up to $30
million (with the ability to accept oversubscriptions at Precinct's
discretion).
The $220 million Placement is underwritten (excluding Haumi's pre-commitment
noted below) and will be conducted today through a bookbuild in which
institutional and other select investors in New Zealand, Australia and other
jurisdictions will be invited to participate. The Placement has been
underwritten at a floor price of $1.51 per new share, being a 5.0% discount
to the last close price of $1.59 on 17 June 2021. Settlement and allotment of
new shares issued under the Placement will take place on 24 June 2021. A
trading halt has been granted by NZX to facilitate the Placement.
Precinct also intends to undertake a non-underwritten Retail Offer of up to
$30 million to allow eligible shareholders with a registered address in New
Zealand to apply for up to $50,000 of new shares. New shares will be offered
under the Retail Offer at the lower of the price paid by investors in the
Placement, and the volume weighted average price of Precinct's shares traded
on NZX during the five trading days up to, and including, the Retail Offer
closing date. The closing date for Retail Offer applications by eligible
shareholders is 2 July 2021.
If the Retail Offer is oversubscribed, applications will be scaled having
regard to shareholdings at 5.00pm (NZT) on the record date of 17 June 2021
and otherwise at Precinct's discretion. The Retail Offer has been designed so
that most eligible shareholders will have the ability to preserve their
current relative shareholding if they choose to participate. Settlement and
allotment of new shares issued under the Retail Offer will take place on 8
July 2021.
Haumi Company Limited (acting in its capacity as the general partner of Haumi
(NZ) Limited Partnership, Precinct's largest shareholder) has made a bid into
the Placement with a target of maintaining a shareholding of approximately
15% (following assumed conversion of the PCTHA convertible notes).
Further details regarding the Retail Offer can be found at
www.shareoffer.co.nz/precinct.
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18-06-2021, 02:39 PM
#1042
Member
I'll be in. Might try and double what I have. It's no good putting cash on TDs nor good just having it sitting there.
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18-06-2021, 04:47 PM
#1043
Originally Posted by Nor
I'll be in. Might try and double what I have. It's no good putting cash on TDs nor good just having it sitting there.
How do you apply for them ??
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18-06-2021, 05:13 PM
#1044
Member
Originally Posted by fungus pudding
How do you apply for them ??
The retail offer for existing holders goes live on June 22nd at this link www.shareoffer.co.nz/precinct.
The general equity raise for non-holders was today and closed at 5pm I think just via brokers. I got an email about it.
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18-06-2021, 05:23 PM
#1045
Direct had a notice at the top of pages this morning asking for those interested to give them a call.
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18-06-2021, 05:27 PM
#1046
Originally Posted by lawson
The retail offer for existing holders goes live on June 22nd at this link www.shareoffer.co.nz/precinct.
The general equity raise for non-holders was today and closed at 5pm I think just via brokers. I got an email about it.
Thanks. I am an existing holder, but haven't received email notification.
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18-06-2021, 06:11 PM
#1047
Member
Originally Posted by fungus pudding
How do you apply for them ??
I rang Jardens and put my name down for a certain number at the upper price point 1.54
More chance of getting largish amount that way than spp. I don't know if it's closed.
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18-06-2021, 08:06 PM
#1048
Originally Posted by 777
Direct had a notice at the top of pages this morning asking for those interested to give them a call.
I tried to get them on the blower early this afternoon and was waiting for 7 minutes before I gave up!
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18-06-2021, 10:03 PM
#1049
Is it worth it with the re 1.5c commision for many ,the dilution and the 60dma dropping below the 180 dma?
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08-07-2021, 09:05 AM
#1050
Applied for $50,000 worth. Got 24640 shares which is about 75%.
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