INVESTEC RAISES $120M IN CAPITAL

Written on the 23 October 2014

INVESTEC RAISES $120M IN CAPITAL

THE Investec Australia Property Fund (IAPF) has raised about $120 million in capital from existing investors, after closing its rights issue.

The capital will be used to acquire an office tower on Ann Street, to pay down debt so that the fund will be ungeared.

It provides the fund with approximately $135 million of additional capacity, to reach its gearing level target of 35 per cent.

IAPF CEO Graeme Katz says it means the fund’s portfolio could now be expanded without having to secure funding in advance.

“We are extremely pleased with the reception from investors following the rights issue, particularly given the volatility of global markets in recent weeks,” Katz says.

“In spite of the broader macroeconomic uncertainty that continues to play out, investors clearly believe in the investment philosophy of the fund and in the value presented by the Australian commercial property market in general.

“Being able to move quickly to secure investment opportunities as they arise will put the fun at a strong competitive advantage.”

The Ann Street deal follows the acquisition of an industrial property in Berrinba last week, adding to its portfolio of seven industrial and five office properties.

“We have already begun deploying the additional capacity created as a result of the rights offer to fund new acquisitions, such as the industrial property at Berrinba,” Katz says.

“This acquisition fits firmly within the fund’s existing asset base of high-quality metropolitan office and industrial properties with good quality tenants.”

IAPF listed on the Johannesburg Stock Exchange in October 2013, allowing South African investors to access the property market in Australia.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter