Wrap Text
Unaudited interim condensed financial results
for the six months to 30 September 2013
INVESTEC AUSTRALIA PROPERTY FUND
Incorporated and registered in Australia in terms of ASIC (ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes Control Act No. 45 of 2003
Share code: IAP
ISIN: AU60INL00018
(“IAPF” or “the Fund”)
Unaudited interim condensed financial results
for the six months to 30 September 2013
Highlights
- These interim results reflect only the pre-listing position of the Fund
- Walker portfolio six industrial assets only assets for this period
- Primary listing on the JSE Main Board on 23 October 2013. Offer
significantly over subscribed
- Secondary listing on Bermuda Stock Exchange to comply
with SARB regulations
- AUD129.9 million property portfolio comprising six industrial
and two office assets
- Portfolio occupancy of 99.4%
- WALE of 6.7 years
- Average lease escalations of 3.7%
- No gearing on listing provides significant headroom to
pursue acquisitions
Statement of comprehensive income
Unaudited
Six months to
30 September
$A'000 2013
Revenue, excluding straight-line rental revenue adjustment 2 288
Straight-line rental revenue adjustment 274
Revenue 2 562
Property expenses (305)
Net property income 2 257
Other operating expenses (209)
Operating profit 2 048
Finance costs (792)
Finance income 30
Profit before taxation 1 286
Taxation
Total comprehensive income attributable to equity holders 1 286
Reconciliation of attributable earnings to distributable earnings
Total comprehensive income attributable to equity holders 1 286
Less: Straight-line rental revenue adjustment (274)
Distributable earnings 1 012
Number of linked units ('000)
Units in issue at the end of the period 22 000
Weighted average number of units in issue 22 000
$A per unit
Distributable income per unit 0.05
Earnings per unit 0.06
Headline earnings per unit 0.06
Statement of financial position
Unaudited
Six months to
30 September
$A'000 2013
ASSETS
Non-current assets 48 152
Investment property 47 878
Straight-line rental revenue adjustment 274
Current assets 3 571
Trade and other receivables 130
Cash and cash equivalents 3 441
Total assets 51 723
EQUITY AND LIABILITIES
Contributed equity 22 000
Retained profits 2 030
Total unitholders' interest 24 030
Non-current liabilities 26 733
Borrowings 26 733
Current liabilities 960
Trade and other payables 960
Total equity and liabilities 51 723
Net asset value per unit ($A) 1.09
Condensed statement of cash flows
Unaudited
Six months to
30 September
$A'000 2013
Cash generated from operations 1 884
Finance income received 30
Finance costs paid (622)
Net cash flow from operating activities 1 292
Net cash flow from investing activities
Net cash flow from financing activities
Net increase in cash and cash equivalents 1 292
Cash and cash equivalents at the beginning of the period 2 149
Cash and cash equivalents at the end of the period 3 441
Condensed statement of changes in equity
Unaudited
Six months to
30 September
$A'000 2013
At the beginning of the period 22 744
Total comprehensive income attributable to equity holders 1 286
Balance at the end of the period 24 030
Segmental reporting
All of the properties owned by the Fund at 30 September 2013 are industrial properties.
Basis of accounting
The unaudited interim condensed financial results for the period ended 30 September 2013 have been prepared in
accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS"),
the presentation and disclosure requirements of IAS 34: Interim Financial Reporting, as issued by the International Accounting
Standards Board (IASB).
The accounting policies applied in the preparation of the results for the period ended 30 September 2013 are in terms of
IFRS and are consistent with those adopted in the Pre-Listing Statement dated 25 September 2013.
Commentary
Introduction
Investec Australia Property Fund ("the Fund" or "IAPF") is an Australian real estate investment trust listed on the JSE Limited
("JSE"). The Fund offers investors exposure to the direct Australian property market via an inward listing on the JSE, as well
as providing exposure to the Australian dollar.
The Fund allows for the tax-efficient flow-through of net rental income to unitholders. The Fund is an uncapped and open-
ended fund and existing and future unitholders will hold a participatory interest in the Fund, which entitles unitholders to a
pro rata share of the underlying income generated by the Fund and a pro rata beneficial interest in the assets of the Fund.
The Fund is registered as a Managed Investment Scheme in Australia governed and operated by Investec Property Limited
and managed by Investec Property Management Pty Limited.
At 30 September 2013, the Fund comprised six assets with a total gross lettable area ("GLA") of 32,380m2 independently
valued at AUD 46.65 million. Post-listing, the portfolio comprises eight assets with a total GLA of 50,681m2 independently
valued at AUD 129.85 million.
The objective of the Fund is to grow and diversify its asset base by investing in high quality commercial real estate assets
(office, industrial and retail) that are well located in major metropolitan cities or established commercial precincts in Australia
and New Zealand.
Financial results
The results presented in this report cover the six-month period from 1 April 2013 to 30 September 2013 and are prepared
for the purposes of complying with the JSE Listings Requirements. The results cover a period that precedes the private
placing and listing of IAPF on the JSE.
During the reporting period the Fund was 100% owned by a subsidiary of Investec Bank (Australia) Limited ("IBAL").
Prior to the listing a distribution was paid to IBAL equating to the distributable earnings of the Fund from its inception
in December 2012 up to 18 October 2013 (being the date new units were allocated pursuant to the private placing).
This amounted to AUD 1.86 million (of which AUD 1.01 million related to the period covered by this report).
The first reporting period post the private placing and listing of IAPF will be for the year ending 31 March 2014, and the
first distribution to new unitholders will be for the period from 18 October 2013 to 31 March 2014. This will be paid in
June 2014.
Listing of IAPF
IAPF established a primary listing on the JSE on 23 October 2013 in the "Real Estate Real Estate Holdings and Development"
sector of the Main Board.
Prior to listing, the Fund raised capital by way of a private placing of 112,685,000 units at AUD 1.00 each, which units were
listed on the JSE on 24 October 2013. The private placing was significantly over subscribed.
The proceeds of the private placing were used to acquire the Punt Road property and the Elizabeth Street property
(which both transferred on 25 October 2013) and to repay the debt on the balance sheet at 30 September 2013.
Prior to the private placing the Fund was owned by IBAL and had 22,000,000 units in issue.
Property Schedule
% of % of
Valuation portfolio GLA portfolio
Sector ($A) by value (m2) by area
Walker Portfolio pre-listing
48 Hawkins Crescent, Ipswich QLD Industrial 3,500,000 2.7 2,044 4.0
47 Sawmill Circuit, Hume ACT Industrial 8,800,000 6.8 5,535 10.9
57 Sawmill Circuit, Hume ACT Industrial 8,200,000 6.3 7,079 14.0
24 Sawmill Circuit, Hume ACT Industrial 8,500,000 6.5 6,300 12.4
44 Sawmill Circuit, Hume ACT Industrial 8,600,000 6.6 4,639 9.2
2 8 Mirage Rd, Direk SA Industrial 9,050,000 7.0 6,783 13.4
Total pre-listing portfolio 46,650,000 35.9 32,380 63.9
Post-listing acquisitions
449 Punt Road, Cremorne VIC Office 28,700,000 22.1 6,384 12.6
35 49 Elizabeth Street, Richmond VIC Office 54,500,000 42.0 11,917 23.5
Total post-listing acquisitions 83,200,000 64.1 18,301 36.1
Total portfolio post listing 129,850,000 100 50,681 100
Debt facility
The Fund has secured a debt facility of up to AUD 125.00 million with Westpac Banking Corporation one of Australia's largest
banks. The facility is for a three-year term and the Fund will hedge at least 75% of its interest rate exposure.
At 30 September 2013 the facility was drawn to AUD 26.84 million. This was used to fund the acquisition of the Walker
Portfolio. Post-listing the entire amount drawn was repaid. The Fund therefore has significant capacity in the debt facility to fund
future acquisitions.
Unit capital
At 30 September 2013 the Fund had 22,000,000 units in issue at AUD 1.00. Post the private placing the total number of units
in issue increased to 134,685,000.
Unitholders
Pre-listing
IBAL held 100% of the units in issue at 30 September 2013.
Post-listing
Investec Property Fund Limited and IBAL are the only unitholders holding in excess of 5% of the Fund's total issued units,
holding 18.56% and 16.33%, respectively.
The total number of unitholders at 30 September 2013 was 1, and the total number of unitholders on listing was 1,509.
On behalf of the Board of Investec Property Limited
Richard Longes Graeme Katz
Chairman Chief Executive Officer
21 November 2013
Important Disclosures
Investec Property Limited (Investec Property) AFS licence 290909 is the Responsible Entity for the Investec Australia
Property Fund (the Fund) ARSN 162 067 736, an Australian registered managed investment scheme registered in
South Africa as a Foreign Collective Investment Scheme (CIS) and listed on the JSE Limited.
Investec Property is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). Neither
investments in the Fund nor Investec Property's obligations represent deposits or other liabilities of Investec Bank (Australia)
Limited ABN 55 071 292 594 (Investec Bank) or any Investec Group entity. Investments in the Fund are subject to
investment risk, including possible delays in repayment and loss of income and capital invested. Neither Investec Bank nor
any Investec Group entity: (i) guarantee or otherwise provide assurance in respect of the obligations of Investec Property;
(ii) guarantee any particular rate of return or the performance of the Fund; or (iii) guarantee the repayment of capital from
the Fund.
Directors of the Responsible Entity
Richard Longes# (Non-executive chairman)
Sam Hackner (Non-executive)
Graeme Katz (Executive)
Samuel Leon (Non-executive)
David Gonski# (Non-executive)
Sally Herman# (Non-executive)
Michael Crawford# (Non-executive)
# Independent
Directors of the Manager
Graeme Katz (Executive)
Zach McHerron (Executive)
Matthew Liston (Executive)
Jason Sandler (Executive)
Samuel Leon (Non-executive)
Investec Australia Property Fund
Registered in Australia in terms of ASIC (ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes Control Act 45 of 2002, as amended
Share code: IAP
ISIN: AU60INL00018
Company Secretary of the Responsible Entity
Anthony Rubin (BCom, BAcc, Member of Australian Institute of Chartered Accountants)
Registered office, postal address of the Responsible Entity and date of establishment of the Fund
Australia:
Level 23, Chifley Tower
2 Chifley Square
Sydney
New South Wales
2000
Australia
Local representative office:
2nd Floor
100 Grayston Drive
Sandown
Sandton
2196
South Africa
Fund established on 12 December 2012 in Sydney, Australia. Registered as a Managed Investment Scheme with ASIC under the
Corporations Act 2001 on 6 February 2013. On 23 August 2013 the Registrar of Collective Investment Schemes authorised the Fund to
solicit investments in the Fund from members of the public in the Republic of South Africa in terms of Section 65 of the Collective Investment
Schemes Control Act, 45 of 2002, as amended.
Responsible Entity
Investec Property Limited
(ACN 071 514 246 AFSL 290 909)
Level 23, Chifley Tower
2 Chifley Square
Sydney
New South Wales
2000
Australia
Manager
Investec Property Management Pty Limited
(ACN 161 587 391)
Level 23, Chifley Tower
2 Chifley Square
Sydney
New South Wales
2000
Australia
Transfer Secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street
Johannesburg
2001
(PO Box 61051, Marshalltown, 2107, South Africa)
Sponsor
The Corporate Finance division of Investec Bank Limited
2nd Floor
100 Grayston Drive
Sandown
Sandton
2196
(PO Box 785700, Sandton, 2146, South Africa)
Custodian
Perpetual Corporate Trust Limited
(ACN 000 341 533)
Level 12, 123 Pitt Street
Sydney
New South Wales
2000
Australia
Independent Party
FirstRand Bank Limited
BankCity, 3 First Place
1st Floor, corner Simmonds and Jeppe Streets
Johannesburg
2001
(PO Box 7713, Johannesburg, 2000, South Africa)
For a copy of the Fund's results, refer to the website:
www.investecaustraliapropertyfund.co.za
Date: 21/11/2013 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
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