INVESTEC RAISES $120M IN CAPITAL
Written on the 23 October 2014
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.