Published: 23 May 2005
The unlisted wholesale Investa Commercial Property Fund will buy interests in 3 Sydney buildings from its parent, Investa Property Group, for $A140 million after an inflow of $A100 million of equity.
Investa’s 2 unlisted wholesale funds, this one & the Martin Place Trust, & 8 syndicates (soon to be 9) now have $A1 billion under management. The listed property group has an $A3.7 billion portfolio of mostly A grade office buildings.
Group managing director Chris O’Donnell said today the commercial property fund would use equity & debt to buy:
19.9% of 400 George St for $A81.8 million
19.9% of 201 Kent St for $A46.9 million, and
8.5% of 60 Martin Place for $A11.6 million, via a 17% interest in the Martin Place Trust.
These investments take the fund’s portfolio to just under $A400 million. The new equity increases its external investors from 6 to 8.
For the listed group, the sale produces an $A6.9 million profit. The group will retire debt, cutting gearing by 2%. The listed group has an $A88 million investment in the fund, representing 30% of its equity.
Website: Investa Property Group