Abacus raising $275M for strategic opportunities

Abacus Property Group (ASX: ABP) has announced a capital raising of $275M through a 100% underwritten institutional placement of $250M and a non-underwritten security purchase plan of $25M. The fixed issue price of $3.95 per security indicates a 7.5% discount to the last closing price on the 23rd of July 2019 and a 18.6% premium to the FY19 NTA per security.

The funds raised will be used to fund more than $710M of strategic opportunities, including the proposed acquisition of Australian Unity Fund (ASX: AOF) with Charter Hall Group (ASX: CHC); and the potential acquisition of self-storage facilities. These opportunities continue to support Abacus’ key strategy to adopt a more annuity style, strong asset backed business model.

Additionally, ABP has provided preliminary updates to its FY19 earnings of including FFO per security of 22.2 cents and distributions per security of 18.5 cents.