This article is from the Australian Property Journal archive
NATIONAL Storage REIT has splashed $285 million for the Southern Cross portfolio, which it currently manages and partly owns through a joint venture with Heitman.
The Southern Cross portfolio comprises 26 storage assets across Australia consisting of 126,000 sqm NLA and 13,000 storage units.
NSR has also entered agreements to acquire four additional storage centres, including a three centre portfolio in Perth and a centre in Cairns, with a combined NLA of 12,400 sqm and 1,240 storage units for a combined total of $16.1 million.
Managing director Andrew Catsoulis said the acquisitions are transformational and strengthen NSR’s position as a leading self-storage provider in Australia and New Zealand and increases NSR’s footprint by a combined 138,400 sqm and 14,240 storage units to 523,000 sqm and 56,000 units respectively.
“FY16 marks the most acquisitive year in our history. In addition to the Southern Cross acquisition, we have announced 23 acquisitions since 1 July 2015 for a combined consideration in excess of $140m including the acquisition of four self-storage centres announced today.
“We continue to maintain a strong pipeline of potential acquisitions, with approximately $100m of assets currently under consideration and advanced negotiations underway for approximately a further $30m of assets,” Catsoulis said.
The announced acquisitions are expected to be accretive to FY17 underlying earnings, and will not impact FY16 underlying earnings.
The acquisitions will be funded via a combination of debt and a $260 million equity raising, comprising a $101 million institutional placement and a $159 million 3-for-10 pro-rata accelerated nonrenounceable entitlement offer.
Following the acquisitions and equity raising, NSR’s gearing will reduce to 33%3,4, and NTA will increase by 5.4% to $1.184 per stapled security (from $1.12 at 1H16).
Factoring in the acquisitions and offer, NSR expects FY17 underlying earnings to be within a range of 9.2 – 9.4 cents per stapled security, representing 5.7% – 8.0%
growth on FY16 guidance.
Australian Property Journal
