Investec Australia Property Fund (IAPF), a South Africa-listed Australian domiciled real estate investment trust, has announced plans to raise up to A$158 million ($110 million) through a dual listing on the Australian Securities Exchange (ASX), in addition to its existing primary listing on the Johannesburg Stock Exchange (JSE).
The fund has filed with the Australian Securities and Investments Commission (ASIC) its intention to offer approximately 76.9 million of new fully paid ordinary units in the fund with a price range of A$1.30 to A$1.35 per unit.
At the lower end of the indicative price range, the offer will raise A$100 million ($70 million), the proceeds of which will be used to repay debt and pay transaction costs associated with the offer, according to a company statement.
The fund is currently listed on the Johannesburg Stock Exchange (JSE).
“A dual listing of the fund on the ASX and JSE will provide the fund with access to a more diversified pool of capital and is expected to provide greater financial flexibility to grow and diversify its portfolio and make further real estate acquisitions in line with its current investment strategy,” IAPF said.
In addition to the ASX listing, Investec Property Fund, IAPF’s largest shareholder, is seeking to sell up to 45 million units worth A$58 million ($40 million) at the bottom of the indicative price range for the purpose of “satisfying oversubscriptions” from certain institutional investors under the offer.
IAPF has hired JPMorgan and Macquarie Capital as bookbuilders to price the raising on May 20 and 21. Trading is expected to commence on the ASX on May 28.
IAPF is the only inward-listed Australian REIT on the JSE. According to its 2019 Annual Report, the fund’s portfolio has grown 8.2 times since listing in October 2013 and now comprises 28 properties with a gross lettable area of 290,281 square meters valued at A$1.063 billion.
On September 5, 2018, unitholders approved a number of resolutions to facilitate an ASX listing on of the fund and associated capital raising, following its recent acquisition of 24 Wormald Street in Canberra and “favourable conditions” in the Australian REIT market.
Also Read:
Frasers Property JV divesting Australian retail assets
Investec Australia buys stake in fintech accelerator H2 Ventures