AIM Ind REIT

AIM Ind REIT: Acq of 29 Woodlands industrial park and private placement of approx 220m new units. The consideration for the ind park is approx $72.0m, bought from Prime Ind Hldgs a private co and this will be funded partly by a priv placement of 220m new units to be priced btwn $0.1976 and $0.2041…

This will raise net proceeds of approx $42.0m - $43.4m and the remainder will be funded by loans. Park has approx 390.1k sq ft of net lettable area and remaining tenure of 44 yrs. The priv placement is at a disc of 10.1%-7.2% from last traded price of $0.22. Net gearing as of last results is approx 0.49x lower than of current acquisition and current yield is approx 9.3%

Priv placement mainly to partly fund the acquisition. Might see slight fall in price due to disc in issuance but not unusual. Acq is expected to be yield accretive so in the long run should be beneficial or at least neutral.