Investec Australia Property Fund goes on buying spree
CAPE TOWN – Investec Australia Property Fund has bought three industrial properties for A$54 million (R557.8m), which it funded through a capital raising that closed on Thursday.
Investec Asset Management Property Fund had a diversified commercial portfolio of 28 properties worth A$1.06 billion as at March 31, according to the group’s website.
It bought the Welshpool Property for A$26.5m from Bieson for an initial yield of 6.6 percent, the group said in a statement.
The Gillman Property was bought for A$25.5m at a yield of 6.8 percent.
The East Arm Property was acquired for A$29m, also from Biesen, at an initial yield of 8.4 percent.
The price per unit represented a 3.8 percent discount to the last close of A$1.58 on the Australia Stock Exchange on Wednesday, and a 3 percent discount to the last close of R15.83 on the JSE on Wednesday.
The Welshpool Property, 10km south-east of Perth, comprises three lots that might be sold off separately upon redevelopment.
The site is occupied by Milne Feeds, a division of the Milne AgriGroup, a large agribusiness group in Western Australia. It has operated from the site for about 100 years.
The Gillman property is 15km north-west of Adelaide, and comprises a large warehouse facility used as a storage and distribution centre primarily for wool products.
It has been occupied by Australian Wool Handlers, a large, global wool and independent cotton handler, for 33 years.
The East Arm Property, 17km south-east of Darwin, comprises a new A-grade warehouse facility for logistics, which has been occupied by Northline, a supply-chain provider.
The acquisitions were expected to report revenue of A$3.51m for the six months to March 31, 2020, and A$7.06m for the year ended March 31, 2021.
Net profit attributable to equity holders was expected to be A$1.47m for the six month period and A$2.98m for the year to March 31, 2021.