Elanor Commercial Property Fund (ASX: ECF) is rattling the tin to raise $36.6 million to purchase a stake in a Pyrmont office building valued at $185 million.
Investors can buy in at a fixed price of $1.04 per security, representing a five per cent discount to the last traded price of $1.095 on 26 April.
Proceeds from the raise will go toward acquiring a 49.9 per cent stake in a property trust that is set to own the office building situated at 19 Harris Street, Pyrmont. Sydney-based Elanor Investors Group (ASX: ENN) will contribute $8.4 million to the purchase.
“The 19 Harris acquisition capitalises on the strong growth in demand for premium quality office space with best-in-class ESG credentials and high-quality tenant amenity,” Elanor CEO Glenn Willis said.
“This investment is a compelling value creation opportunity for ECF with our strong conviction in the acquisition demonstrated by the Elanor Contribution.”
The equity raise is fully underwritten by lead manager MA Moelis Australia Advisory, alongside brokers Ord Minnett Limited and Shaw and Partners.
Elanor’s largest security holder - Rockworth Investment Holdings – has committed to sub-underwrite up to $20 million of the offer.
ECF’s market capitalisation is set to increase to $345 million after the raise, reflecting an increase of 12 per cent.
As noted by CFG fund manager David Burgess, the property is located in one of Sydney's tech hubs, home to the likes of Google, Network 10 and Domain.
“19 Harris is a high-quality commercial office building located in one of Australia’s pre-eminent technology hubs – a differentiated asset with best-in-class ESG credentials that meets the requirements of the modern office era,” ECF fund manager David Burgess said.
“This investment typifies ECF’s strategy of acquiring assets that have strong competitive advantages in their respective markets – that also have clearly identified value creation opportunities."
The acquisition is expected to settle on 24 May, 2022.
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