PGGM and Charter Hall Acquire Irongate Group

Posted on 03/31/2022


Charter Hall Group (ASX: CHC) and PGGM inked a deal to acquire Irongate Group (ASX: IAP) for A$ 1.2 billion. Under the terms of the Scheme Implementation Agreement, Irongate Group securityholders will receive A$ 1.90 cash per IAP stapled security and be entitled to retain the distribution for the period ending March 31, 2022 of up to 4.67 cents per IAP stapled security. Charter Hall will own a 12% stake in the Partnership, with PGGM owning the remaining 88% interest. The IAP Board has unanimously recommended that IAP securityholders vote in favor of the transaction, subject to no superior proposal emerging and an independent expert concluding that the transaction is fair and reasonable, and therefore in the best interest of, IAP securityholders.

Pursuant to the Memorandum of Understanding (MOU) entered into with 360 Capital, buyers have agreed to sell three IAP properties to 360 Capital for aggregate consideration of A$ 256.7 million shortly after implementation of the schemes. Charter Hall has agreed to acquire IAP’s funds management business for A$ 5 million and associated co-investment stakes for A$ 22.5 million. The buyers will nominate Charter Hall as the acquirer of all of the units in Irongate Property Fund II on implementation of the transaction.

Advisors
The buyers engaged Barrenjoey Advisory Pty Limited and Morgan Stanley Australia Limited as its financial advisors and Allens as its legal advisors in relation to the transaction.

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