Investec Makes IPO Move for $1.6bn Property Fund

Investec Australia Property Fund is set to list on the Australian Stock exchange after raising more than $100 million and closing its offer earlier than expected citing strong investor demand.

The fund (IAPF) made the announcement of its plans to publicly list earlier this month as the its valuation surpassed the billion dollar mark.

Investec, which is listed in South Africa, comprises a portfolio of 28 properties and an occupancy rate of 99.4 per cent with a weighted average lease expiry of 4.7 years. The fund says it will focus on investment in office, industrial and retail property across Australia and New Zealand.

Related: Investec Acquires Hallam Industrial Site in $22 Million Deal

IAPF successfully raised a total of $102 million through the proposed issue of 76.9 million new units (offer) which the fund says was oversubscribed.

“We are particularly pleased to see such strong appetite from Australian investors to list the fund on the ASX,” Fund chief executive Graeme Katz said.

The early closure of the offer follows a local roadshow led by joint lead managers, J.P. Morgan and Macquarie Capital.

“Demand was strong, given the current and ongoing outlook for industrial and office properties in Australia and New Zealand,” Katz said.

Related: Investec Australia Property Fund Secures Prime NZ Office Building for $111 Million

To meet excess demand, 45 million units (with a value of A$59 million) owned by Investec Property Fund Limited will also be sold to institutional investors who participated in the IPF sale.

The offer and the IPF sale price is $1.32 per unit (AUD), above the minimum subscription price for the offer.

“The fund’s primary listing on the ASX, in addition to its current primary listing on the JSE, will set it up for the future and will stand to benefit our unitholders, existing and new,” Katz said.

Units in the fund are expected to start trading on the ASX on a deferred settlement basis on Tuesday May 28 under the ticker "IAP", with normal trading kicking off on Thursday May 30.

The fund's current $1.63 billion portfolio includes 449 Punt Road in Cremorne Victoria, 100 Willis Street in Wellington New Zealand, 2 Richardson Place North Ryde New South Wales, and 324 Queen Street Brisbane Queensland (pictured).