WHAT IS HAPPENING?
Since IPO in November 2018, Redcape has consistently traded at a discount to Directors NAV despite the strong operational performance reflected through positive increases in independent valuations across its portfolio. Notwithstanding COVID-19 related disruptions to the portfolio, the performance of Redcape’s assets has remained strong. As a result of this, Redcape is currently pursuing a delisting Proposal which provides securityholders optionality to either remain invested in an open-ended unlisted fund with a high-quality underlying asset base or realise their investment at $1.15 per Redcape Security, a significant premium to the current trading price, under a Buy-Back which would be conducted prior to delisting.
On Friday, 10 September 2021, the delisting transaction was approved by Redcape Securityholders.
Once the Delisting has occurred, the Unlisted Redcape intends to offer Redcape Securityholders quarterly liquidity via an unlisted liquidity facility. Redcape’s existing corporate entities and management structure will be retained in the unlisted structure and the unlisted fund will continue to be managed by the existing Manager and governed by the existing Responsible Entity Board. The strategy will remain unchanged with Redcape continuing to seek to provide investors with regular and growing cash distributions and capital growth over the investment term by investing in and actively managing a diversified portfolio of high-quality pubs, hotels and alternative use real estate opportunities with potential for refurbishment or redevelopment to increase land utilisation.
For further information about the unlisted fund please read the Draft Retail Product Disclosure Statement.
Redcape securityholders are being invited to participate in the Buy-Back and Rights Issue being undertaken as part of the delisting of Redcape and associated liquidity offer. The Buy-Back and Rights Issue will open on 20 September 2021 and will close on 18 and 21 October 2021 respectively. The Delisting is expected to take effect from 2 November 2021.
The liquidity offer will comprise a buy-back and a rights issue intended to provide securityholders with the option to either:
- Continue their investment by retaining their holding and /or acquire additional securities under the rights issue; or
- Exit their investment by selling on-market or through the buy-back.
The buy-back and rights issue are being undertaking at the same fixed price of $1.15 per security. The rights issue is designed to partially fund the buy-back and will be fully underwritten by MA Financial Group.
HOW TO APPLY
The Buy-Back closes at 5:00pm on Monday, 18 October 2021 and the Rights Issue closes at 5:00pm on Thursday, 21 October 2021.
To participate in the Buy-Back you should ensure that your completed Buy-Back Participation Form is received by the Registry (for Issuer Sponsored Holders) or that your instructions are processed by your Controlling Participant (for CHESS Holders) by no later than 5.00pm on the Buy-Back Closing Date (Monday 18 October 2021).
If you would like to take up all or part of your Entitlement to increase your holding in Redcape, and apply for Additional New Securities in excess of your Entitlement, you will need to complete and return your personalised Rights Issue Entitlement and Acceptance Form together with your requisite Application Amount to the Registry, of alternatively pay your Application Amount using BPAY®, so that they are received by 5.00pm (Sydney time) on Thursday, 21 October 2021.
For further information regarding the liquidity offer please read the Buy-Back and Rights Issue booklet issued. If you have any questions in respect of the Buy-Back or Rights Issue, please call 1300 737 760 (within Australia) or +61 2 9290 9600 (outside Australia) from 8.30am to 5.30pm (Sydney time) Monday to Friday.