This article is from the Australian Property Journal archive
ABACUS (ASX:ABP) is launching a $225 million pro rata equity rise as part of the proposed de-stapling of its circa $3 billion in self storage assets to create Abacus Storage King.
The institutional and retail offer will be underwritten at a floor price of $1.41 per Abacus Storage King (ASK) security, representing a 10.2% discount of ASK’s NTA of $1.57.
Calculator Australia, Abacus’s largest shareholder, has already committed to approximately 57.8 million securities of its entitlement, resulting in holding a director interest of around 40% in ASK after the offer.
The balance of the offer—$144 million at the floor price—will be underwritten by Barrenjoey Markets Pty Limited and Morgan Stanley Australia Securities Limited
The equity raising will help Abacus strengthen the balance sheet of Abacus Storage King and pay outstanding debt.
This in addition to helping fund further portfolio growth, including through further acquisitions and the construction of new self storage facilities.
As well as funding operating platform enhancement opportunities and the transaction costs associated with the offer.
Pending the completion of the proposed de-stapling and equity raising, ASK forecasts a FFO per security of 6.3 cents and a distribution of 6.0 cents per security.
Abacus Property Group expects the gearing of ASK at completion of Offer to be approximately 26.7%, within its targeted range of 25% to 35%.
Abacus fully acquired Storage King back in late-2020, buying out the remaining 75% interest in a $50 million deal. With the group acquiring $600 million of investments in the sectors over a six month period ending February 2023.
