Australian REIT Income Fund Closes Its $66 Million Initial Public Offering
March 21 2013 - 8:23AM
Marketwired
Harvest Portfolios Group Inc. (the "Manager") is pleased to
announce that Australian REIT Income Fund (the "Fund") (TSX:HRR.UN)
has completed today its initial public offering (the "Offering") of
Class A Units and Class F Units (collectively referred to as
"Units"), each at a price of $12.00 per Unit for aggregate gross
proceeds of $66,000,000.00. The Fund has granted the Agents an
over-allotment option, exercisable for a period of 30 days, to
acquire up to 15% of the Class A Units issued today at a price of
$12.00 per Class A Unit.
The Class A Units are now trading on the Toronto Stock Exchange
under the symbol HRR.UN. The Class F Units will not be listed on a
stock exchange but are convertible into Class A Units on a monthly
basis.
The Fund's investment objectives are to provide holders of Units
with: (i) stable monthly cash distributions; and (ii) the
opportunity for capital appreciation.
The Fund will invest in an actively managed portfolio comprised
primarily of equity securities listed on the Australian Securities
Exchange issued by Australian real estate investment trusts and, to
a lesser extent, issuers principally engaged in the real estate
industry in Australia.
Macquarie Private Portfolio Management Limited (the "Portfolio
Manager") has been retained as portfolio manager for the Fund. The
Portfolio Manager is a member of the Macquarie Group. The Portfolio
Manager will be responsible for the Fund's investment strategy and
will provide portfolio management services to the Fund.
The indicative distribution amount is initially targeted to be
$0.055 per Unit per month ($0.66 per annum) representing an annual
cash distribution of 5.5% based on the 12.00 per Unit issue
price.
The syndicate of agents was co-led by BMO Capital Markets, CIBC
and Macquarie Private Wealth Inc., and included Scotiabank,
National Bank Financial Inc., TD Securities Inc., Canaccord Genuity
Corp., Desjardins Securities Inc., GMP Securities L.P., Raymond
James Ltd., All Group Financial Services Inc., Burgeonvest Bick
Securities Limited and MGI Securities Inc. (collectively, the
"Agents").
Borden Ladner Gervais LLP acted as counsel for the Fund and the
Manager and Blake, Cassels & Graydon LLP acted as counsel for
the Agents.
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "intend", "will" and
similar expressions to the extent they relate to the Fund, the
Manager and/or the Portfolio Manager. The forward-looking
statements are not historical facts but reflect the Fund's, the
Manager's, and/or the Portfolio Manager's current expectations
regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations. Although the Fund, the Manager, and/or the
Portfolio Manager believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. The Fund,
the Manager and/or the Portfolio Manager undertakes no obligation
to update publicly or otherwise revise any forward-looking
statement or information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
For additional information or a copy of the Prospectus, please
contact your registered financial advisor.
Contacts: Harvest Portfolios Group Inc. Michael Kovacs
1-866-998-8298mkovacs@harvestportfolios.com
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