SYDNEY, Nov. 5, 2021 /PRNewswire/ --
IAP has entered into a contract for sale on 5 November 2021 with Charter Hall Direct Fund 4 to sell the property located at 24 Wormald Street, Symonston ACT (Property) for A$36,000,000.
Use of proceeds
The proceeds from the sale of the Property will be used to repay debt.
Rationale for the sale
- The Fund previously advised the market that it would look to sell properties where it believes valuation creation has been maximised, to protect against downside risk or to improve the overall quality of the portfolio
- With 6 years to run on the lease to the Commonwealth of Australia, and strong demand for high quality office properties, the Fund determined that it was an opportune time to consider a sale of the Property.
- The sale provides an opportunity to rebalance the Fund's geographical exposure to the ACT following the recent purchase of 38 Sydney Avenue for A$73,750,000.
- The proceeds from the sale of the Property will be used to repay debt which will further strengthen the Fund's balance sheet and provide additional debt capacity for future acquisitions.
- The sale price is 18% above the current book value of A$30,500,000, and 21% above the price paid for the Property of A$29,750,000 in March 2019.
The effective date of the sale is the settlement date under the contract for sale, which is anticipated to be 13 December 2021. There are no conditions precedent to settlement.
The sale is not a categorised transaction in terms of the JSE Listings Requirements. This announcement is voluntary and for information purposes only.
Investec Bank Limited
 The Property is held in Irongate Property Sub Trust No.21, a wholly-owned subsidiary of the Fund.
 The legal purchasing entity is The Trust Company (Australia) Limited as custodian for Bieson Pty Ltd as trustee for the CHDIF4 Symonston Trust
 Subject to customary adjustments.
Irongate Group (JSE: IAP)
Comprising Irongate Property Fund I (IPF I, ARSN 162 067 736) and Irongate Property Fund II (IPF 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
SOURCE Irongate Group