Investec Property Fund has announced the finalisation of the sale of its 38.04% equity interest in the UK fund to Argo Real Estate Limited for £35 million.
“Investec Property Fund has been looking to consolidate our portfolio over the past twenty-four months, recycling capital to pursue value accretive opportunities” commented joint-CEO Andrew Wooler.
“Our stake in Argo represented an investment in a UK platform that was underpinned by good quality real estate but lacked the relevant scale in a competitive market. Exiting our minority position will allow us to continue to de-lever the fund’s balance sheet and to create capacity to support the growth of the Pan-European logistics business”.
The sale is subject to the completion of a due diligence but not subject to shareholder approval and it is expected to be completed before the end of March 2021.
Post the disposal of the UK investment, the fund’s loan-to-value is expected to be c.39%.
“Following on from the sale of our stake in the Investec Australia Property Fund in June 2020, the sale of Argo further consolidates the Fund’s investment portfolio, enabling us to focus on our core South African and Pan-European strategies,” concluded Wooler.