Investec Australia Property Fund: A$120m rights offer ‘to further deals’

THE INVESTEC Australia Property Fund (IAPF), which invests in industrial and retail property in Australia, announced details yesterday of a A$120 million (R1.2 billion) rights offer to existing shareholders. This follows the fund’s announcement in July that it would buy an office building, 757 Ann Street in Brisbane, for A$70m. The offer will run from October 6 to 17 and is priced at a 6.1 percent discount to the closing price prior to news of the offer. It entitles investors to 83.08 shares in return for every 100 IAPF shares held. The funds raised will complete the Ann Street acquisition with the remainder earmarked to pay down existing debt to create capacity for further deals. Chief executive Graeme Katz said the fund had experienced asset growth of 86 percent since its listing on the JSE in October last year and this rights offer would allow the fund to complete its third major acquisition. The fund had performed well relative to both local and global markets and with a healthy pipeline of deals and the ability to provide a rand hedge into top-tier real estate, the group expected a positive market response to the offer. IAPF shares closed unchanged at R11.40 yesterday. – Roy Cokayne