On Oct 26, ARA LOGOS Logistics Trust (ALOG) announced the proposed acquisition of five logistics properties located at the Port of Brisbane, including a development asset on the corner of Heron Drive and Curlew Street (Heron properties), all for $225.9 million. ALOG also plans to acquire a 49.5% stake in New LAIVS Trust and 40% stake in Oxford Property Fund for $178.5 million. The two funds together own five logistics properties in New South Wales and Victoria. Altogether, including expenses, the acquisition will cost $441.2 million.

The proposed acquisition is likely to be funded by a combination of debt and equity. ALOG raised $50 million in a placement of 90.5 million units at 55.25 cents each on Nov 3. The manager is also proposing an issuance to Ivanhoé Cambridge China Inc, a fund manager which owns stakes in the two funds, of up to $70 million worth of new units, and to sponsor LOGOS for up to $18.7 million worth of new units.

Terms of a preferential equity fund raising to unitholders will be announced in a circular at a later date. The remaining amount will be funded by debt and on a pro-forma basis, gearing would rise to 42.9% from 40.4% if the acquisition had been completed in 1H2020.

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