Investa Commercial Property Fund: Investors queue up in buy-in window period
Investa’s unlisted office fund has generated $500 million in reverse inquiry – institutional investors wanting a bigger piece of its equity – as it closes a redemption window for its existing stakeholders with no withdrawals taken.
The stampede of capital wanting a place inside the $4.5 billion Investa Commercial Property Fund is testament to the broader strength in Australia’s prime real estate market which is already squeezing yields towards record lows.
News of the result of ICPF’s biennial liquidity event – as the withdrawal window is termed within the property funds industry – comes at a critical time for the broader Investa platform which includes the listed Investa Office Fund.
The unlisted fund owns the management rights for the entire platform, including its listed sister fund, giving it the capacity to raise further fees through investment mandates.
Within days, the two funds are expected to unveil the terms of a deal under which IOF would pay $45 million or more to ICPF for joint control over the Investa platform.
The mooted joint ownership of the platform is shaping as a thorn in the side for Cromwell Property Group, led by Paul Weightman, which is pursuing a near $3 billion offer to buy out the listed Investa fund.
And as the overall Investa platform, now led by Peter Menegazzo, and ICPF fund manager Jason Leong, fend off eager investors keen for a bigger slice of the action, the listed fund is expected to unveil the latest round of revaluations for its office towers, some of which it holds jointly with the unlisted fund.
“The outcome of the recent liquidity offer demonstrates the depth of the demand for high quality office investments,” Mr Leong said.
“We are pleased that ICPF continues to enjoy strong support from its existing unitholder base and interest from prospective new investors attracted to the high quality portfolio and strong allocations to the best performing markets of Sydney and Melbourne.”
The reverse inquiry for further stakes in ICPF came from existing investors.
“This interest is being stimulated by the performance and standing of our gateway markets of Sydney and Melbourne, which are arguably the best positioned office markets globally with favourable investment attributes of falling vacancy, reducing incentives and rising rents,” Mr Menegazzo said.
High on the agenda now for ICPF, along with its joint venture partner, Gwynvill Group, is the redevelopment of 60 Martin Place, where Lendlease has been appointed as the builder.
