15 Jun - 9 min read

Opening of a Fully Underwritten Accelerated Bookbuild Offering to Fund the Acquisition and JSE Trading Halt

Opening of a Fully Underwritten Accelerated Bookbuild Offering to Fund the Acquisition and JSE Trading Halt

Irongate Group (JSE: IAP)
Comprising Irongate Property Fund I (IPF I, ARSN 162 067 736) and Irongate Property Fund II (IPF II, ARSN 644 081 309), established in Australia
and registered with ASIC as managed investment schemes
Operated by Irongate Funds Management Limited (ACN 071 514 246; AFSL 290 909) (Responsible Entity)
IPF I is registered as a foreign collective investment scheme in terms of the Collective Investment Schemes Control Act No.45 of 2002
ISIN: AU0000046005
(IAP or the Fund)


SENS ANNOUNCEMENT
15 June 2021



Opening of a Fully Underwritten Accelerated Bookbuild Offering to Fund
the Acquisition and JSE Trading Halt


Irongate Funds Management Limited as responsible entity of the Irongate Group(1) (IAP) hereby
announces the launch of an accelerated bookbuild of approximately A$50 million (approximately
ZAR528 million(2)) (Placement) through the issue of 34,013,605 new fully paid ordinary stapled
securities (New Securities) at an issue price of A$1.47 per New Security (Issue Price). The
Issue Price represents a:

      -     3.9% discount to the last closing price of A$1.53 on the ASX on Friday, 11 June 2021;
            and
      -     6.2% FY22 distribution yield.(3)

The Placement will be completed by way of a vendor consideration placing in terms of section
5.62 of the JSE Listings Requirements and the Responsible Entity confirms that the Issue Price
is within the parameters prescribed by section 5.62 of the JSE Listings Requirements.

The proceeds from the Placement will be utilised to part fund the acquisition of a 100% interest
(Acquisition) in the property located at 38 Sydney Avenue, Canberra ACT(4) (Property). Further
details on the Acquisition and the Property are contained in the announcement lodged on SENS
dated today’s date, Tuesday, 15 June 2021.

The Placement will be offered to qualifying investors and will be implemented through a
bookbuild process (Bookbuild) which opens with immediate effect and will close at 12:00pm
(South African time). The Placement is not an offer to the public as contemplated under the
South African Companies Act, No. 71 of 2008, as amended. The issue of the New Securities
under the Placement is subject to the Underwriting Agreement not being terminated in
accordance with its terms.

The Placement is fully underwritten by Macquarie Capital (Australia) Limited and UBS AG,
Australia Branch, pursuant to an underwriting agreement entered into with the Responsible
Entity (Underwriting Agreement). The directors of the Responsible Entity have made due and
careful enquiry to confirm that the aforementioned underwriters can meet their underwriting
commitments in terms of the Underwriting Agreement.

The New Securities, when issued, will be credited as fully paid and will rank pari passu in all
respects with existing stapled securities of IAP. New Securities issued under the Placement will
be entitled to the distribution for the six months to 30 September 2021.

A copy of the ASX announcement and investor presentation in respect of the Placement and
the Acquisition is available for inspection by investors using the following link:
https://www.asx.com.au/asx/share-price-research/company/IAP

As disclosed on the ASX, trading of IAP stapled securities on the ASX will be halted until the
earlier of commencement of normal trading on Wednesday, 16 June 2021 (Sydney time) and
IAP making an announcement to the market regarding the outcome of the Placement.

As approved by the JSE Limited, trading in IAP stapled securities on the JSE will be halted from
9:00am on Tuesday, 15 June 2021 (South African time) and normal trading will commence on
the JSE from 9:00am on Thursday, 17 June 2021 (South African time).

Footnotes:
(1)Comprising Irongate Property Fund I and Irongate Property Fund II.
(2)Based on an AUD/ZAR exchange rate of 1.0000/10.5663 as at 5.00pm New York close on Friday, 11 June 2021.
(3)Based on midpoint of guidance of distribution growth range of 2% - 3%. The higher end of the range dependent on
   securing additional commitments and deployment for the TAP Fund. lAP's policy is to pay out between 80% and 100%
   of FFO, with an expectation for FY22 to be in the middle of the target range. This forecast is based on the assumptions
   that the macro-economic environment will not deteriorate markedly, no tenant failures will occur, and budgeted renewals
   will be concluded. Budgeted rental income is based on in force leases, contractual escalations and market-related
   renewals.
(4)The interest will be acquired by a wholly owned sub trust of IAP purchasing all of the units in a trust known as the 38
   Sydney Ave Trust.


For further information contact:

 Karl Priessnitz                                 Jarrett Geldenhuys
 Email: IAPF@investec.co.za                      Email: IAPF@investec.co.za
 Tel: 011 286 3269                               Tel: 011 286 9481


Johannesburg

Investment Bank and Sponsor
Investec Bank Limited


                                                                                               
Important Information

This announcement is not for release to US wire services or distribution in the United States,
any other jurisdiction in which such release or distribution would be unlawful. This
announcement is for information purposes only and shall not constitute or form part of an offer
or solicitation of an offer to purchase or subscribe for securities in any jurisdiction. The
Placement is not to be regarded as an offer or invitation to any person in the European Union
any jurisdiction to the extent that any applicable legal requirement in such jurisdiction has not
been complied with or it is for any reason illegal or unlawful to make such an offer or invitation in
such jurisdiction.

The securities offered in terms of the Placement have not been and will not be registered under
the US Securities Act of 1933, and may not be offered or sold, directly or indirectly, in the United
States, except in transactions exempt from, or not subject to, the registration requirements of
the US Securities Act and any applicable US state securities laws.

Neither this announcement nor the Placement constitutes or is intended to constitute an offer to
the public in South Africa in terms of the Companies Act, No. 71 of 2008 (as amended). In
South Africa, the invitation to apply for IAP stapled securities in terms of the Placement is only
open to (i) persons who are acting as principal and who apply for IAP stapled securities at a
minimum acquisition cost of ZAR 1,000,000, as contemplated in section 96(1)(b) of the South
African Companies Act 71 of 2008 (as amended), or (ii) persons who comply with the
requirements set out in section 96(1)(a) of the South African Companies Act 71 of 2008 (as
amended).

This announcement has been issued by and is the sole responsibility of the Responsible Entity.
Investec Bank Limited and its affiliates are not responsible or liable for the accuracy or
completeness of this announcement (or any other written or oral information made available to
or publicly available to any interested party or its advisers) and make no representations or
warranties regarding this announcement.

This announcement does not claim to identify or suggest the risks (direct or indirect) which may
be associated with an investment in the stapled securities. Any investment decision to buy
stapled securities in terms of the Placement must be made solely on the basis of publicly
available information which has not been independently verified by Investec Bank Limited.

Offer Restrictions

This announcement does not constitute an offer of stapled securities in terms of the Placement
in any jurisdiction in which it would be unlawful. In particular, this announcement may not be
distributed to any person, and the stapled securities offered in terms of the Placement may not
be offered or sold, in any country except to the extent permitted below.

Guernsey
This announcement may only be made available to, and the IAP stapled securities may only be
offered or sold, in or from within the Bailiwick of Guernsey either (i) by persons licensed to do so
under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 (the "POI Law"); or (ii) to
persons licensed under the POI Law, the Insurance Business (Bailiwick of Guernsey) Law,
2002, the Banking Supervision (Bailiwick of Guernsey) Law, 1994, the Insurance Managers and
Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 or the Regulation of Fiduciaries,
Administration Businesses and Company Directors (Bailiwick of Guernsey) Law, 2000.

Hong Kong
WARNING: This announcement has not been, and will not be, authorised by the Securities and
Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap.
571) of the Laws of Hong Kong (the SFO). No action has been taken in Hong Kong to authorise
this announcement or to permit the distribution of this announcement or any documents issued
in connection with the Placement. Accordingly, the IAP stapled securities have not been and will
not be offered or sold in Hong Kong other than to “professional investors" (as defined in the
SFO).

No advertisement, invitation or document relating to the IAP stapled securities has been or will
be issued, or has been or will be in the possession of any person for the purpose of issue, in
Hong Kong or elsewhere that is directed at, or the contents of which are likely to be accessed or
read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong
Kong) other than with respect to the IAP stapled securities which are or are intended to be
disposed of only to persons outside Hong Kong or only to professional investors as defined in
the SFO and any rules made under that ordinance.

The contents of this announcement have not been reviewed by any Hong Kong regulatory
authority. You are advised to exercise caution in relation to the offer. If you are in doubt about
any contents of this announcement, you should obtain independent professional advice.

New Zealand
This announcement has not been registered, filed with or approved by any New Zealand
regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand) (the FMC
Act). The IAP stapled securities are not being offered or sold in New Zealand (or allotted with a
view to being offered for sale in New Zealand) other than to a person who:

-   is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act;
-   meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act;
-   is large within the meaning of clause 39 of Schedule 1 of the FMC Act;
-   is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or
-   is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act.

Singapore
This announcement has not been registered as a prospectus with the Monetary Authority of
Singapore (MAS) and, accordingly, statutory liability under the Securities and Futures Act,
Chapter 289 (the SFA) in relation to the content of prospectuses does not apply, and you
should consider carefully whether the investment is suitable for you. IAP is not a collective
investment scheme authorised under Section 286 of the SFA or recognised by the MAS under
Section 287 of the SFA and the IAP stapled securities are not allowed to be offered to the retail
public.

This announcement and any other document or material in connection with the offer or sale, or
invitation for subscription or purchase of the IAP stapled securities may not be circulated or                                                                                                     
distributed, nor may the IAP stapled securities be offered or sold, or be made the subject of an
invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore
except to "institutional investors" (as defined in the SFA), or otherwise pursuant to, and in
accordance with the conditions of, any other applicable provisions of the SFA.

This announcement has been given to you on the basis that you are an "institutional investor"
(as defined under the SFA). In the event that you are not an institutional investor, please return
this announcement immediately. You may not forward or circulate this announcement to any
other person in Singapore.

Any offer is not made to you with a view to the IAP stapled securities being subsequently
offered for sale to any other party. You are advised to acquaint yourself with the SFA provisions
relating to resale restrictions in Singapore and comply accordingly.

South Africa
This announcement does not, nor is it intended to, constitute a prospectus prepared and
registered under the South African Companies Act 71 of 2008 (as amended) and may not be
distributed to the public in South Africa.

An entity or institution resident in South Africa may not implement participation in the offer
unless (i) permitted under the South African Exchange Control Regulations or (ii) a specific
approval has been obtained from an authorised foreign exchange dealer in South Africa or the
Financial Surveillance Department of the South African Reserve Bank.

Date: 15-06-2021 08:17:00
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