Investec Property Fund disposes of European industrial asset

print

Investec Property Fund disposes of European industrial asset

199 views


Published Date: 2021-04-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Investec Property Fund disposes of European industrial asset

The fund plans to focus on its SA and Pan-European logistics portfolios.

Investec Property Fund (IPF) is selling its 25% interest in its Pan-European light industrial property portfolio as it focuses on its SA and Pan-European logistics portfolios. The move will help to strengthen its balance sheet.

The fund has exited its investments in Australian and UK property over the past year and said it wanted to further consolidate its portfolio of properties. It will dispose of its interest in the light industrial portfolio, together with the majority shareholder's 75% equity interest, to Archer German Holdco and Archer Investment Holdco for €51.2-million. After settling in-country debt and performance fees owing to the general partner, it said net proceeds would amount to about €22.9-million.

Although IPF had the right of first offer to buy its partner's 75% stake, and while the portfolio remained a well-performing asset class, it chose not to pursue it due to the worthwhile offer and its focus on logistics properties.

IPF said it would used the proceeds from the sale to de-lever its balance sheet. Following the disposal and post payment of its interim dividend, it said its loan-to-value would reduce to about 38%.

The fund's shares closed 0.2% up at R11.17 yesterday.





0 Comments


Similar Stories