This article is from the Australian Property Journal archive
INVESTA Office Fund has sold its legacy investment in the Dutch Office Fund to a consortium of existing investors for €155 million for a big discount.
Since taking over management of IOF in 2011, Investa has carried IOF’s investment in DOF at a discount to the stated DOF Net Asset Value to reflect the illiquid nature of the investment. The book value at 30 June 2013 was €182.5 million, a 15% discount to the 30 June 2013 DOF NAV.
Since June, the DOF NAV has continued to decline and the sale price reflects a discount to the 30 September 2013 DOF NAV of 24%.
IOF fund manager Toby Phelps said the sale is part of the fund’s strategy of becoming 100% Australian focused.
“The sale of this investment was materially hampered by a number of structural constraints within DOF and the restructure process we have been leading to address these issues has been crucial to achieving a sale.
“Whilst it has taken time to achieve this result, we are satisfied we have achieved a good outcome for our unitholders and can now focus on achieving higher total returns from this capital in our local market,” he added.
“We’re pleased to have completed the sale of our largest offshore exposure. This is a significant milestone in the delivery of our strategy of having a 100% Australian portfolio. Post this sale the fund’s last remaining offshore investment, Bastion Tower, will comprise just 3% of the portfolio,” he added.
“Consistent with the $520 million of offshore disposals in 2011/12, we intend to reinvest the sale proceeds into high quality Australian CBD assets and further leverage the capability and experience of Investa in the Australian office sector,” Phelps said.
Property Review
