IAPF launches rights offer

INVESTEC Australia Property Fund (IAPF), the Australian domiciled fund that is listed on the JSE, plans to undertake a partially underwritten rights offer to raise R1.53 billion.

The company said yesterday that said it planned to issue 113.3 million new rights offer units in the ratio of 34.59683 new units for every 100 units held on the rights offer record date of February 10 at an issue price of R13.50 a rights offer unit.

The proceeds from the rights offer will be used to partially settle the purchase consideration for two acquisitions announced last month for a total of A$169.2million (R1.7billion).

These are the acquisition of the Lot 19 Trust, which owns the land and office building located at 2 Richardson Place, North Ryde, New South Wales in Australia for A$89.88m and the 20-24 Rodborough Road Trust, which owns the land and office buildings located at 20-24 Rodborough Road, Frenchs Forest, New South Wales, for A$79.3m.

The rights offer is not conditional on a minimum subscription.

Irrevocable commitments have been obtained from Investec Bank, a 12.6 percent unitholder in IAPF), and Investec Property Fund, a 16.9 percent unitholder in IAPF, to subscribe for their entitlement in terms of the rights offer, which represents 29.5 percent of the total rights offer proceeds.

The rights offer will open February 13 and close at noon on February 24.

The results of the rights offer will be published on February 27.