Investec Australia Property Fund has announced the successful completion of a transaction relating to the internalisation of the company’s management function to acquire the management rights of the fund, to assume the management rights of an unlisted third-party opportunity fund (the “TAP Fund”) and certain assets of the Investec Group and, to make an investment in the TAP Fund.
The completion of this transaction follows a vote which took place at a general meeting on the 17th of November 2020 where unitholders provided overwhelming approval for the transaction. As a result, a new internally managed stapled group has been formed which will continue to be listed on both the ASX and the JSE but will operate under a new name, Irongate Group.
“We are excited about this new chapter in our evolution. We will continue to be a meaningful player in multi-sector property investment and asset management in Australia and New Zealand by growing our existing property portfolio” commented CEO of Investec Australia Property Fund, Graeme Katz.
“In addition, the transaction provides us with the opportunity to build out a fund’s management platform, initially through management of the TAP Fund. Importantly, the same management team that has been involved in the growth of IAP over the past 7 years will transition across to the new business”.
“While we will no longer be part of the Investec Group, we remain proud of our roots. The support from the Investec Group over the past seven years has positioned the Fund well for the next stage of its growth. As a result of moving from an external to an internal management model, unitholders will also benefit from an enhanced corporate governance framework where the board and management will be directly accountability to unitholders.”