Mulling Australian ex­change list­ing

The Star Early Edition - - OPINION & ANALYSIS - – Roy Cokayne

THE MAN­AGE­MENT of the Investec Aus­tralia Prop­erty Fund (IAPF), the Aus­tralia-domi­ciled fund listed on the JSE, be­lieves the to­tal port­fo­lio value at about A$942 mil­lion (R10.4 bil­lion) is at a scale where it could con­sider a list­ing on the Australian Stock Ex­change (ASX). Graeme Katz, the chief ex­ec­u­tive of the IAPF, said yes­ter­day that list­ing on the ASX was a nat­u­ral evo­lu­tion for the fund as it looked to grow and ac­cess al­ter­na­tive sources of cap­i­tal. “A list­ing on the ASX has the po­ten­tial for the IAPF to re-rate and will put the fund in a unique po­si­tion to ac­cess cap­i­tal from two ma­ture prop­erty mar­kets,” he said. Katz said the fund, which com­prised 25 prop­er­ties, had grown 6.4 times since list­ing in Oc­to­ber 2013 and had built a valu­able plat­form of prop­er­ties sup­ported by strong un­der­ly­ing fun­da­men­tals that would be dif­fi­cult to repli­cate given cur­rent di­rect as­set pric­ing and the con­tin­u­ing flow of off­shore cap­i­tal. The IAPF yes­ter­day re­ported a 3 per­cent growth in dis­tri­bu­tions a share to 4.95 cents pre-with­hold­ing tax for the six months to Septem­ber, from 4.81c in the prior pe­riod. The oc­cu­pancy rate of the port­fo­lio im­proved to 98.4 per­cent from 94.6 per­cent in March this year. The fund main­tained its full-year dis­tri­bu­tion growth guid­ance at be­tween 3 per­cent and 4 per­cent pre-with­hold­ing tax.

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