Investec Property Fund backs Australia listing


Investec Property Fund backs Australia listing


Published Date: 2019-05-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Investec Property Fund backs Australia listing

The fund says releasing some of its shares into this month's listing will help it diversify its portfolio.

Investec Property Fund will make 45 million shares it holds in Investec Australia Property Fund (IAPF) available to cover any oversubscription when the fund lists on the Australian Securities Exchange at the end of the month. It says this will free up capital to help it diversify its portfolio.

IAPF plans to raise over R1 billion through the listing. It will issue 76.9 million shares at between A$1.30 and A$1.35, raising at least A$100 million. The fund currently has a primary listing on the JSE and a secondary listing on the Bermuda Stock Exchange. Once the ASX listing has been implemented, it will delist from Bermuda and have dual primary listings on the JSE and the ASX.

On Friday, it said the offer would include a broker offer open to retail investors in Australia and New Zealand and an institutional offer inviting certain investors in SA, Australia, New Zealand, Hong Kong and Singapore to bid for the new units.

Investec Property Fund said if the 45-million shares it's offering are taken up by institutional investors, its stake in IAPF will reduce to around 10%. It has committed €40 million and €65 million to the Pan-European logistics and light industrial platforms that it's investing in.

IAPF also released its 2019 financial results on Friday, showing net assets of A$621 million at the end of March, equating to $1.30 per unit.

Revenue rose 15% to A$89.5 in the year to end-March and operating profit increased by 12% to A$64.3 million. Attributable income halved to A$53.1 million due to lower fair value adjustments and basic earnings per unit declined by 54% to 11.09c per share. Headline earnings per unit fell 24% to 7.92c. It increased its total distribution per unit before withholding tax by 2% to 10.23c.

Investec Property Fund's shares closed 0.9% up at R16.15 on Friday while Investec Australia Property Fund fell 2.3% to R13.04.


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