APN European Retail Trust Pays $251 Million Euro for 23 Net Leased Assets

The Australian - November 16, 2005

APN European Retail Trust has announced that it will add 23 assets to its portfolio, lifting its total asset value to nearly $500 million. The total value of the 23 assets is $251.4 million.

'It is the only (Australian) stock which offers exposure to European retail properties. The new assets have long-term and quality lease covenants,' he said. The assets - 16 in Greece and seven in Germany - were purchased from two unidentified vendors, at yields of 6.9 per cent and 7.8 per cent, respectively, after acquisition costs. Mr Boothman said the properties in Greece were leased to one of the world's largest supermarket chains, Carrefour, from France, with an average lease expiry of 17 years. The German properties were leased to Roller, a warehouse-style furniture retailer, and carried an average lease of 10.2 years. The acquisitions are to be settled next month. Mr Boothman said the total transaction cost to be funded by debt and equity would be $276 million.

APN will raise about $131.2 million to fund the latest acquisitions through a non-renounceable entitlement offer of nine fully paid units for 13 partly paid units, at an issue price of $1.04 per fully paid unit. The balance will come from debt facilities. The trust would have a gearing of 54-55 per cent.

The vehicle, listed in July, already has six assets - four shopping centres in Spain and two in Italy. Mr Boothman said the trust would continue to look for acquisitions across Europe, which remained under-supplied in terms of shopping centres. APN said partly paid units in the trust had had a strong start since its initial public offering in July. The units are showing around 13 per cent capital growth, on top of the IPO forecast annualised income entitlement of 9 percent. Sphere: Related Content