- Charter Hall and Dutch pension fund PGGM will acquire all stapled securities in Irongate
- The partnership will be managed by Charter Hall
- PGGM, however, will have an 88% interest
Charter Hall (ASX: CHC) has announced that a partnership with PGGM, a Dutch pension fund, has entered into a scheme implementation agreement with Irongate Group (ASX: IAP) to acquire all stapled securities via trust schemes of arrangement, subject to certain conditions.
Under the current terms, IAP security holders were received $1.90 cash per stapled security and will be entitled to retain the distribution for the period ending 31 March, up to 4.67 cents per stapled security.
The transaction
Although Charter Hall will manage the partnership, PGGM will maintain an 88% interest. The duo will fund the initial acquisition, which consists of a $1.6 billion portfolio of IAP’s industrial and office properties.
Three IAP properties, with a total value of $256.7 million, were sold to 360 Capital as part of the transaction, albeit under a few conditions.
Under the agreement, Charter Hall has also acquired IAP’s funds management business for $5 million and associated co-investment stakes for $22.5 million.
“We are pleased to continue our partnership with PGGM with the expansion of our industrial and logistics mandate,” said Charler Hall managing director and CEO, David Harrison.
“This Transaction further demonstrates Charter Hall’s track record of structuring and executing take-private transactions alongside our wholesale capital partners, following the successful acquisition of ALE Property Group by Charter Hall Long WALE REIT and Hostplus in 2021.”
David Harrison, Charter Hall Group CEO
Further conditions of the transaction include IAP securityholder approval of the trust schemes. Barenjoey Advisory Pty Limited and Morgan Stanley Australia Limited will act as financial advisors, while Allens will be legal advisors, for the transaction.
Implementation of the transaction timetable is still subject to approval by the Johannesburg Stock Exchange, expected to occur in May 20222. Implementation of the transaction is expected in late July 2022.
