This article is from the Australian Property Journal archive
THE well known superannuation funds which purchased shares through Acorn Capital in listed developer Becton for an average of $2.26 would be feeling more than a little queasy after that investment dropped to a record low of $1.62 last Friday.
Becton, which announced a debt restructuring last week, has fallen from $5.10 in November last year to Friday’s low. Just one month ago the share price was around $2.02.
In all, Acorn Capital purchased a total of 8 million shares for just over $19 million -5% of Becton – for an average price of just over $2.26.
Super funds involved in the purchase include UniSuper; Qantas Superannuation Fund; SunSuper; Health Super; Catholic Superannuation; Queensland Local Government Super; Military Superannuation; Auscoal Super and Commonwealth Bank Officers’ Super.
Ironically, CBA recently sold out of its holding in Becton.
Excuse the pun but as one broker told Australian Property Journal late Friday, the investment by Acorn Capital in Becton at present “is like turning an entire tree into an acorn”.
However, no doubt Acorn Capital is acting in the long term interests of its investors and the low of $1.62 compared to the average buying price of $2.26 is just a short term hiccup – even though so far the investment has shrunk a massive 64 cents or almost 30%.
Last Friday, the Becton Retail Fund settled on the sale of five non-core assets.
The properties were individually sold and comprised a supermarket based shopping centre in Coonabarabran, New South Wales and four chain-retail properties in Hoppers Crossing and Morwell, Victoria; Hobart, Tasmania; and Whyalla, South Australia.
The sale totalled $29.8 million which represents a 4.4% premium to book value.
The Becton Retail Fund now owns 11 Australian retail properties with a collective value in excess of $223 million.
Australian Property Journal
