Abacus Property Group, an Australia-based, publicly traded, diversified real estate investment trust (REIT) with interests in self-storage, intends to raise $402 million through institutional and entitlement offers. The company will use the funds to pay down debt and round out nearly $1 billion to invest in office and self-storage acquisitions, according to the source.
The institutional component to the capitalization was completed on Dec. 9 and raised about $356 million. The entitlement offer, expected to raise $46 million, allows eligible Abacus shareholders with a registered address in Australia or New Zealand to obtain one new security for every 4.8 they held on Dec. 10 for $2.90 each, according to a press release. It’s backed by Calculator Australia Trust, which owns 53.7 percent of Abacus and invests on behalf of the London-based Kirsh Family Office, the investment holder of South African billionaire Nathan Kirsh, the source reported.
The REIT has identified $160 million in potential self-storage acquisitions in major markets to go alongside $80 million worth of projects in its development pipeline, according to the source. It’s spent about $1 billion on office and self-storage assets since last July, including $50 million last month to purchase the remaining 75 percent of the Storage King operation.
Following the offerings, the value of the REIT’s self-storage portfolio is expected to increase to $1.36 billion, which would comprise about 40 percent of its $3.5 billion in investments, including its development pipeline, the source reported.
In addition to self-storage and office, Abacus has interests in residential and retail properties.
Sources:
Financial Review, Abacus Eyes $400M Raising to Fund Self-Storage, Office Expansion
Abacus, Retail Entitlement Offer
