Issue of New Ordinary Shares
On 8 September 2021 the Company announced a proposed Open Offer, Placing, Offer for Subscription and Intermediaries Offer targeting gross issue proceeds of approximately £75 million at a price of 109 pence per new Ordinary Share (the "Issue"). A prospectus detailing the terms of the Issue, and a circular convening a General Meeting of the Company in connection therewith, have been published and are available below.
Watch a short update from fund manager Evert Castelein:
Under the terms of the Open Offer existing Shareholders are entitled to subscribe for 1 new Ordinary Share for every 4 Ordinary Shares held on the Record Date (being 6 September 2021), as well as further new Ordinary Shares if they so wish through the Excess Application Facility. Investors in the Initial Issue will be entitled to receive the next quarterly dividend declared by the Company in respect of the three months to 30 September 2021, which is expected to be declared in November 2021.
The Prospectus published in connection with the Initial Issue also provides for a Share Issuance Programme permitting the issue of an additional 250 million new Ordinary Shares over a 12 month period up to 7 September 2022.
The Directors believe that an investment in the Company offers the following attractive characteristics:
- Exposure to a portfolio of 16 high quality European logistics real estate assets, diversified across five countries and 44 tenants, valued at approximately €492.7 million. The portfolio consists of eleven mid-box logistics assets and five urban logistics warehouses, diversified across the Netherlands, France, Germany, Spain and Poland, mitigating country specific risks while leaving a significant investment universe from which to select portfolio additions;
- A highly diversified tenant base, with 44 tenants spread across a wide range of sectors, with a strong focus on third party logistics providers and food related logistics. Inflation-linked income through annual CPI/ILAT indexation in lease agreements;
- The prospect of income and growth from one of the most attractive sectors in real estate;
- An attractive dividend, with first and second interim dividends of 1.41 euro cents (1.21 pence) in respect of the year ending 31 December 2021 paid
- Access to Aberdeen Standard Investments’ over 225 real estate investment professionals and transaction managers, across eight European offices. This local knowledge and feet on the ground continues to provide the Company with an active source of on and off-market acquisition opportunities;
- A strong focus on sustainability, demonstrated by the Company’s four out of five star GRESB rating for 2020. Rooftop solar is now installed on nine of the portfolio’s 16 assets, generating on-site renewable energy;
- Competitive investment management fee of 0.75 per cent. of the Net Asset Value up to €1.25 billion and 0.60 per cent. thereafter.
Tony Roper, Chairman of the Company commented:
At IPO in December 2017, the Company’s investment proposition was centred on the premise that e-commerce penetration in Europe was significantly behind the UK, and that the inevitable growth to follow would lead to strong returns for investors with exposure to high quality European logistics real estate. While this investment thesis was already playing out as forecast prior to 2020, COVID-19 has accelerated the trend and we have been ideally positioned to capture this growth. With e-commerce penetration in Europe continuing to lag the UK and with industry estimates of c. 300 million sq ft of additional logistics space required to meet rising demand over the next five years, we remain steadfast in our conviction in the sector’s future growth prospects.
“To date we have built a diversified portfolio of 16 modern, high quality logistics warehouses with long term, inflation linked income characteristics, which has underpinned year on year valuation gains and attractive returns for shareholders. As investors recognise the structural tailwinds benefitting the sector, we look forward to the further scale and diversification benefits which this fundraise will afford.”