IRONGATE GROUP - Voluntary Announcement Acquisition of Industrial Property Acquisition

Voluntary Announcement – Acquisition of Industrial Property Acquisition

Irongate Group (JSE: IAP)
Comprising Irongate Property Fund I (IPF I, ARSN 162 067 736) and Irongate Property Fund 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)


SENS ANNOUNCEMENT
8 March 2021



Voluntary Announcement – Acquisition of Industrial Property
Acquisition

Securityholders are advised that IAP(1) has entered into a contract for sale of land to acquire an
industrial facility located at 153 Main Beach Road, Pinkenba QLD (Property).

The effective date of the acquisition of the Property is the settlement date under the contract for
sale of land which is scheduled for 22 March 2021.

Purchase Consideration

The total purchase consideration is $24,750,000 which represents an initial yield of 5.3% (5.0%
post all transaction costs). The purchase consideration and all transaction costs will be funded
through IAP’s existing syndicated debt facility.

Rationale for the Acquisition

The acquisition of the Property represents an attractive investment for IAP for the following
reasons:

•         The Property was constructed in 2018 and comprises 1,852m² of office and warehouse
          accommodation and 33,615m² of high-quality hardstand.
•         The Property provides IAP with a strategic land holding of almost four-hectares in the
          Australian Trade Coast Precinct, one of Brisbane’s premier industrial locations.
•         Pinkenba is immediately adjacent to Brisbane Airport and the area will benefit from
          infrastructure upgrades associated with the new Brisbane International Cruise Terminal.
•         The Property is leased to Grays, the largest industrial, auto and commercial eCommerce
          business in Australasia, with a lease expiry in March 2028 and fixed annual escalations of
          3.5%.
•         The Brisbane industrial sector currently offers relative value.
•         The acquisition will increase IAP’s exposure to industrial property to 32% by both income
          and value.

Footnote:
(1)Through a wholly-owned sub trust, Irongate Property Sub Trust No.25

Specific Information Relating to the Property

 Registered description        Lot 484 on SP302919 and Lot 485 on SP300840
 Title                         Freehold
 Sector                        Industrial
 Location                      15 kms east of the Brisbane CBD
 Year built                    2018
 Site area                     38,960m2
 Gross lettable area           1,881m² (excluding hardstand)
 Rent per m2                   AUD 696/m² (gross lettable area) / AUD 34/m² (site area)
 Vacancy                       0%


Categorisation

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


Johannesburg

Investment Bank and Sponsor
Investec Bank Limited




                                                                                               

Date: 08-03-2021 08:16:00
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