This article is from the Australian Property Journal archive
INVESTA Office Fund is proposing to buyback up of 10% of issued units in a bid to enhance the value of the company.
At the same time, the fund has also sold its 50% interest in the US asset Waltham Woods at 880 and 890 Winter Streets Waltham, Massachusetts for $US42.0 million as part a continued strategy to reposition the fund to the domestic CBD market.
Investa Property Group executive Campbell Hanan said the current unit price does not fully reflect the underlying value of IOF’s portfolio and a buyback initiative will create and enhance unitholder value.
The total number of units purchased will depend on prevailing market conditions and will be funded by debt and proceeds from offshore asset sales. But it will be capped at 272.9 million units and start on August 29 following the full year results.
“This initiative is a key component of the go-forward strategy announced in April when Investa assumed management of IOF. It was accretive to earnings when considered earlier in the year, and now with current market value, we believe can contribute even further to the value of IOF units,” he added.
Investa has also entered into a new corporate debt facility of $A552 million to replace IOF’s current Australian syndicated debt facility. It is anticipated that the refinance of the current facility will occur on 19 August 2011. The new facility has a 3-year maturity and will replace the current facility, which is due to mature in June 2012.
Australian Property Journal
