Ashurst advises UBS AG and Credit Suisse on A3569 million IPO

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    Credit Suisse (Australia) Limited and UBS AG, Australia Branch were the underwriters to the Offer IPO and together with Ord Minnett and E&P Corporate Advisory, were the joint lead managers to the IPO Offer. The Offer is fully underwritten by UBS and Credit Suisse in accordance with the terms of the underwriting agreement. Ashurst advised UBS and Credit Suisse on the underwriting aspects of the IPO, including on the new design and distribution obligations under the Corporations Act that are coming into force on 5 October 2021. came into effect on 5 October 2021.

    RAM Essential Services Property Fund is the second biggest real estate IPO of the year and one of the first to which the new design and distribution obligations have applied. RAM Essential Services Property Fund will be an Australian REIT listed on the ASX that will own a diversified portfolio of high quality Australian medical and essential retail real estate assets, underpinned by essential services tenants. The Fund will initially own a portfolio of 33 properties independently valued at $706.3 million with a Weighted Average Lease Expiry of 7.1 years and 99.1% occupancy. The Fund's objective is to provide Securityholders with stable and secure income with the potential for both income and capital growth through an exposure to a high quality, defensive portfolio of assets with favourable sector trends.

    RAM Property Funds Management Ltd, as responsible entity of the RAM Essential Services Property Fund,  is undertaking an initial public offering of new stapled securities in the Fund, each comprising one fully paid ordinary unit in RAM Australia Retail Property Fund (RARPF) stapled to one fully paid ordinary unit in RAM Australia Medical Property Fund (RAMPF).

    In connection with the IPO, the RARPF and RAMPF are undergoing a restructure that is expected to complete around the time the new securities are allotted and issued pursuant to the IPO. 

    The Fund is seeking to raise $356.9 million through the issue of approximately 356.9 million new stapled securities at an offer price of $1.00 per new security. The Offer IPO to comprises:

    • An institutional offer to institutional investors in Australia, New Zealand Hong Kong and Switzerland; and
    • A broker firm offer open to Australian and New Zealand resident retail clients of participating brokers.

    The Ashurst team was led by Corporate Transactions partner Sarah Dulhunty, who was assisted by counsel Ethan Perry (Singapore), senior associate Miao Qun Unsworth-Tang and graduate Carl Gerstle.

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