$100 Million Equity Raise Funds Property Portfolio Expansion

MARKET RELEASE

$100 Million Equity Raise Funds Property Portfolio Expansion

Argosy Property Limited intends to raise up to $100 million by way of the issue of new equity to partly fund two separate acquisitions with different vendors, both involving landmark office buildings in the government precinct in Wellington.

The conditional acquisitions are at 15 Stout Street (formerly the Ministry of Defence building) and the NZ Post Headquarters in Waterloo Quay. Both purchases will be backed by long-term government tenancies and are consistent with Argosy’s acquisition strategy, as outlined to shareholders earlier this year, to make acquisitions that are well located, meet the needs of tenants and are accretive to shareholders.

The acquisitions will:

• Be EPS accretive post upgrade completion

• Increase the portfolio WALT from 5.4 years to 6.1 years

• Significantly improve the portfolio lease profile

• Improve quality of earnings

Equity will be raised in two tranches: a placement involving institutional and other qualified investors to raise up to $80 million and an offer to Argosy’s existing shareholders to raise up to $20 million through a Share Purchase Plan (“SPP”). Eligible shareholders (i.e. with registered addresses in New Zealand) will be invited to subscribe for new shares in parcels of $1,000 to a maximum of $15,000 each. Argosy expects to announce details on or before 3 January 2013 with SPP documentation to be provided to shareholders in mid-January. The SPP will close in early February 2013. >More>>

Click here to read the full release: Equity_Raise1712.pdf

Click here to read further details about the properties

ENDS

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