IRONGATE GROUP - Sale of 24 Wormald Street, Symonston ACT For 18% above book value

Sale of 24 Wormald Street, Symonston ACT For 18% above book value

Irongate Group (JSE: IAP)
Comprising Irongate Property Fund I (IPF I, ARSN 162 067 736) and Irongate Property Fund II (IPF II, ARSN 644 081 309), established in Australia
and registered with ASIC as managed investment schemes
Operated by Irongate Funds Management Limited (ACN 071 514 246; AFSL 290 909) (Responsible Entity)
IPF I is registered as a foreign collective investment scheme in terms of the Collective Investment Schemes Control Act No.45 of 2002
ISIN: AU0000046005
(IAP or the Fund)



SALE OF 24 WORMALD STREET, SYMONSTON ACT FOR 18%
ABOVE BOOK VALUE
Introduction

IAP1 has entered into a contract for sale on 5 November 2021 with Charter Hall Direct Fund 42
to sell the property located at 24 Wormald Street, Symonston ACT (Property) for
A$36,000,0003.

Use of proceeds

The proceeds from the sale of the Property will be used to repay debt.

Rationale for the sale

-        The Fund previously advised the market that it would look to sell properties where it
         believes valuation creation has been maximised, to protect against downside risk or to
         improve the overall quality of the portfolio
-        With 6 years to run on the lease to the Commonwealth of Australia, and strong demand
         for high quality office properties, the Fund determined that it was an opportune time to
         consider a sale of the Property.
-        The sale provides an opportunity to rebalance the Fund’s geographical exposure to the
         ACT following the recent purchase of 38 Sydney Avenue for A$73,750,000.
-        The proceeds from the sale of the Property will be used to repay debt which will further
         strengthen the Fund’s balance sheet and provide additional debt capacity for future
         acquisitions.
-        The sale price is 18% above the current book value of A$30,500,000, and 21% above the
         price paid for the Property of A$29,750,000 in March 2019.

Effective date




1 The Property is held in Irongate Property Sub Trust No.21, a wholly-owned subsidiary of the Fund.
2 The legal purchasing entity is The Trust Company (Australia) Limited as custodian for Bieson Pty Ltd as trustee for the
CHDIF4 Symonston Trust
3 Subject to customary adjustments.
The effective date of the sale is the settlement date under the contract for sale, which is
anticipated to be 13 December 2021. There are no conditions precedent to settlement.


Categorisation

The sale is not a categorised transaction in terms of the JSE Listings Requirements. This
announcement is voluntary and for information purposes only.



5 November 2021
Johannesburg

Sponsor
Investec Bank Limited




                                                                                              

Date: 05-11-2021 08:38:00
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