ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Abacus Completes $250m Capital Raising

d0163220-9318-446a-aaaf-955626190dda

ASX-listed property investor Abacus has successfully raised $250 million to pursue more than $710 million of new investment opportunities with a focus on office markets and self-storage.

The property group launched the fully-underwritten placement at $3.95 a share, with the proceeds used to increase its stake in the Australian Unity Office Fund, pursue opportunities in self-storage and finalise the off-market acquisition of a Sydney CBD office asset.

Abacus, which announced that it had swiftly completed the placement on Thursday, is the latest trust to join the REIT raising spree — joining Cromwell, Centuria, Dexus, GPT, Charter Hall and others in tapping the market for funds.

Abacus said the proceeds will also firm up its capital commitment in a $230 million Church Street office complex it is developing with Salta Properties as it transitions to a more annuity-style business model.

“The placement enables us to accelerate this transition and positions Abacus for future growth beyond the near-term identified opportunities, with low gearing and over $900 million of acquisition capacity.”

Abacus said it had settled about $180 million in self-storage acquisitions over the last year, with an additional $63 million under contract and $34 million under consideration. The group has identified a development pipeline of 35,000sq m, flagging anticipated annual returns of more than 9 per cent.

Abacus also acquired a minority interest in Storage King.

Related: REITs Boost Coffers as Investor Appetite Ramps Up


▲
▲Abacus offloaded the sub-regional Liverpool Plaza for $46 million earlier this year.


Abacus’ strategic evolution into self-storage comes as it reduces its exposure in residential and retail — offloading the Liverpool Plaza and Bacchus Marsh malls and disposing about $150 million of residential investment.

The group has reworked its existing retail portfolio, entering into a joint venture with ISPT for a 50 per cent stake in two Abacus retail assets — bringing in more than $200 million after the settlement of Bacchus Marsh.

Abacus said its preliminary unaudited financial year profits sit at 24 cents a share, with a declared distribution of 18.5 cents — a decline from 31.7 cents a share a year earlier. Abacus said its net property rental income has grown 8 per cent over the year to $114 million.

Abacus is concurrently undertaking a share purchase plan at $3.95 a share, which is capped at $25 million.

Abacus resumed trading on Thursday, with its shares closing down 3 per cent at $4.14.

ADVERTISEMENT
TOP STORIES
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://theurbandeveloper.com/articles/abacus-eyes-self-storage-as-it-raises-250m