Industria REIT to tap markets in $85m raise

Macquarie has launched an $85 million raise for Industria REIT, as the industrial landlord leans on shareholders to fund its latest acquisition.

The deal has been priced at $2.12, a 0.9 per cent discount to the last close, as reported earlier by the BusinessNow blog.

Industria’s (IDR) move to tap equity markets comes amid a frenetic period for the sector, as low interest rates spur deal-making and new listings as investors flock to the relatively high yields on offer from commercial real estate.

Under the terms of the deal, existing shareholders can participate in a 1 for 4 accelerated non-renounceable entitlement offer that will account for $65.2m of the raise.

The remaining $19.8m will generated by an institutional placement.

Industria has sought the fresh funds to finance its $158.6m purchase of WesTrac’s sprawling industrial facility in New South Wales’ Hunter Valley region.

In total 40.1m new securities will be issued with books on the institutional placement and entitlement offer due to close at 4.30pm today (AEST).